Lot Calculator - Tips! Use Lot Size Properly Scope Markets
No Agent Taobao Direct Buying Guide! Let's view all baby and determine
Taobao Direct Guide for users familiar with 3rd party agents and navigating taobao (with chrome google translate on, hence the title)
Taobao direct consolidation and shipping is available in the following countries: USA, Canada, Australia, New Zealand, Japan, Malaysia, Singapore, Hong Kong, Macau, Taiwan. This review is primarily geared towards the US as that’s where I live.
What is Taobao direct? Basically instead of copying and pasting the item URL into the agent website, you add items to your cart like a regular ecommerce site, check out, wait for items to arrive in the warehouse (similar to what happens when you use an agent) and then when all your items from various sellers are in, you request the logistics company to send everything to you. Disclaimer: I have no Chinese fluency written or otherwise. I did everything through Google translate and my experience with how tb works through agents. If something goes wrong I will probably write off the item 🤣 if you communicate a lot with the ts who use translators it also helps get your point across. If you type in English in tb live chat they will redirect you to the HK/tw help staff who have medium English. Also I bought items I purchased previously with an agent or vouched for here on RL or had crazy high reviews/ratings. Pros:
Duck the agent fees and exchange rate bs
Shipping is cheaper but EMS is the only option right now
If you are overcharged for shipping you can get a refund
It’s also easier to collect the discounts and coupons from stores (ymmv with agent)
Not good for reps or mainstream branded rep items as they can be marked as contraband by taobao and then you have to get a refund and return to the seller
You pay 5% sales tax (see note at the end) and 3% on the total payment through alipay with a foreign cc (regardless if your cc does not charge forex)
No qc pics and can't really control the declared value if that matters
Other categories of items like make up brushes, liquids, powders, sharps, etc. are not eligible
20 day hold limit apparently every day after that is charged 1 yuan per item per day
I think the ideal usage for taobao direct would be light items like innerwear, jewelry, soft/non fragile goods, generally clothing and shoes although I don’t know if they will include the box by default. Please see here for the image guide for ordering Sorry in advance if my descriptions are wonky, I'm not great at following OR writing instructions but hopefully the screenshots make it easier to follow along.
Create an account (there are various guides out there for overseas members) and go into your account and add your home address (or the superbuy warehouse address)
Find your items and change the delivery location to "overseas", add to cart
When you're ready to check out hit check out, enter your cc info on the alipay (remember to use a card that doesn't charge foreign transaction fees) and confirm it goes through.
Wait for all your stuff to come in. When its in the tb warehouse it will show up in the "consolidated delivery" section tagged with a weight (usually volumetric or actual). The 20 day countdown will start once its available for international shipping.
After all your items are in, or you can batch up by selecting items on the consolidated delivery page, submit for delivery. Pay again through alipay.
Use the check logistics option to get the tracking info and wait for your haul!
After receiving but before you open, take photos of it on a scale and the lxwxh with a ruler as well. This is because they will overestimate your shipping but there isn't rehearsal shipping like with agents. You can request a refund after the fact with the "refund/complaint" option on the consolidated delivery page (mine says check refund because I've already gone through it)
Getting a refund: select the "only refund" option, "goods received" and "shipping cost does not match" and leave the full shipping amount in. Upload your measurement and weight photos (make sure the file size is not too big). Within 72hr they will reply and ask you to modify your application with the real amount owed (if any). It will go back to your cc through alipay (may take a few days).
Cost comparison: Even after the 5% sales tax and 3% alipay, it cost me $6.20 total from my credit card statement. A 39 yuan top up for sb is $6.53 as of today (if using paypal). For some the qc pictures and the longer storage period are well worth the difference. However a good compromise is the parcel forwarding option in sb. Instead of shipping to your house you can set up superbuy’s warehouse address and pay in taobao and wait for your items to show up in sb. You also have to submit the item link and the tracking # in superbuy so they can find your stuff. There's no sales tax and usually no shipping and you can select the coupons you want. I had a pair of pants make it to the sb warehouse almost 24hr after ordering, and another 24hr after entering my shipping info and item link in sb, it showed up in my account with free (non hd) pictures of the item. Then I cried putting together the shipping parcel lol. This is a good way to dodge the sales tax and hold items for longer. However then you're at the mercy of the shipping costs (but you do have more options for delivery lines and you can customize how you want your items packaged too). The taobao warehouse will really throw everything in there, probably in a poly envelope. The taobao shipping rates are 90yuan for the first .5kg and 48 yuan per every .5 after which is very competitive even after accounting for volumetric weight. Sb ems starts at 186 for the first .5kg and 61y every .5kg after. Of course rates and terms are subject to change with the times. I had a package that came in at 277g when I measured it at home but I was charged for 1.6kg. After sending in the package images they refunded 144yuan (the true volumetric weight was about .97kg.) Taobao volumetric calculation is lxwxh (cm)/6000. Timeline wise I submitted 8/16 and received 8/28 although I think because it was so light they used epacket/china post because it was not an EMS tracking # big sigh. Still less than 10 days can't complain. Hope this helps! I'm sure I missed something on this guide so feel free to leave any questions and I will update the post accordingly. Apologies this is very us-centric, I also cannot comment on getting a refund or exchange from sellers before you ship out but there is now english support (albeit a bit wonky) through chat and aliwangwang+google translate can get you pretty far. Ps: highly recommend using the app too as its easier to get chat messages from the seller. You can screenshot and upload images to Google translate to read the text.
Forex Trading Basics Reddit - Forex Glossary Terms For Beginners
What is Forex - Terminology
https://preview.redd.it/pmjpy8sqh1x51.jpg?width=580&format=pjpg&auto=webp&s=b02715d6d6f153592a967f577c18578363ca731c The FOREX market is the largest financial market in the world. On a daily basis, trillions of dollars are traded in different currencies around the world. Being FOREX the basis for international capital transactions, its liquidity and volume are much greater than any other financial market. It is estimated that the average volume traded by the world's largest stock exchange, the New York Stock Exchange (NYSE) in a full month, is equal to the volume traded daily in the Forex currency market. In addition, it is estimated that this volume will increase by 25% annually. 80% of transactions are between the US dollar (USD), the euro (EUR), the yen (JPY), the British pound (GBP), the Swiss franc (CHF), and the Australian dollars (AUD) and Canadian (CAD).
What is traded in the Forex market?
We could just say that money. Trading in FOREX simultaneously involves buying one currency (for example euros) and selling another (for example US dollars). These simultaneous purchase and sale operations are carried out through online brokers. Operations are specified in pairs; for example the euro and the dollar (EUR / USD) or the pound sterling and the Yen (GBP / JPY). These types of transactions can be somewhat confusing at first since nothing is being purchased physically. Basically, each currency is tied to the economy of its respective country and its value is a direct reflection of people's perception of that economy. For example, if there is a perception that the economy in Japan is going to weaken, the Yen is likely to be devalued against other currencies. In other words, people are going to sell Yen and they are going to buy currencies from countries where the economy is or will be better than Japan. In general, the exchange of one currency for another reflects the condition of the health of the economy of that country with respect to the health of the economy of other countries. Unlike other financial markets such as the stock market, the currency market does not have a fixed location like the largest exchanges in the world. These types of markets are known as OTC (Over The Counter). Transactions take place independently around the world, mainly over the Internet, and prices can vary from place to place. Due to its decentralized nature, the foreign exchange market is operated 24 hours a day from Monday to Friday. >>> Forex Signals With Unbeatable Performance: Verified Forex Results And 5° Rated OnInvesting.com|Free Forex Signals Trial:CLICK HERE TO JOIN FOR FREE
The 8 most widely used currencies (USD, EUR, JPY, GBP, CHF, CAD, NZD, and AUD) are known as “ major currencies ”. All other currencies are called " minor currencies ." You don't need to worry about minor currencies, as you probably won't start trading them for now. The USD, EUR, JPY, GBP, and CHF currencies are the most popular and most liquid currencies on the market.
• Base currency
The base currency is the first currency in any currency pair. It shows how much the base currency is worth against the second currency. For example, if the USD / CHF has a rate of 1.6350, it means that 1 USD is worth 1.6350 CHF. In the forex market, the US dollar is in many cases the base currency to make quotes, the quotes are expressed in units of $ 1 on the other currency of the pair. In some other pairs, the base currency is the British pound, the euro, the Australian dollar, or the New Zealand dollar.
• Quoted currency
The quote currency is the second currency in the currency pair. This is often referred to as a "pip-currency" and any unrealized gains or losses are expressed in this currency.
A pip is the smallest unit of the price of any currency. Almost all currencies consist of 5 significant digits and most pairs have the decimal point immediately after the first digit. For example EUR / USD = 1.2538, in this case, a pip is the smallest change in the fourth decimal space, which is, 0.0001. A notable exception is the USD / JPY pair where the pip equals $ 0.01.
• Purchase price (bid)
The buying price (bid) is the price at which the market is ready to buy a specific currency in the Forex market. At this price, one can sell the base currency. The purchase price is displayed on the left side. For example, in GBP / USD = 1.88112 / 15, the selling price is 1.8812. This means that you can sell a GPB for $ 1.8812.
• Sale Price (ask)
The asking price is the price at which the market is ready to sell a specific currency pair in the Forex market. At this price, you can buy the base currency. The sale price is displayed on the right-hand side. For example, at EUR / USD = 1.2812 / 15, the selling price here is 1.2815. This means that you can buy one euro for $ 1.2815. The selling price is also called the bid price.
All Forex quotes include two prices, the bid (offer) and the ask (demand). The bid is the price at which the broker is willing to buy the base currency in exchange for the quoted currency. This means that the bid is the price at which you can sell. The ask is the price at which the broker is willing to sell the base currency in exchange for the quoted currency. This means that the ask is the price at which you will buy. The difference between the bid and the ask is popularly known as the spread and is the consideration that the online broker receives for its services.
• Transaction costs
The transaction cost, which could be said to be the same as the Spread, is calculated as: Transaction Cost = Ask - Bid. It is the number of pips that are paid when opening a position. The final amount also depends on the size of the operation. It is important to note that depending on the broker and the volatility, the difference between the ask and the bid can increase, making it more expensive to open a trade. This generally happens when there is a lot of volatility and little liquidity, as happens during the announcement of some relevant economic data.
• Cross currency
A cross-currency is any pair where one of the currencies is the US dollar (USD). These pairs show an erratic price behavior when the operator opens two operations in US dollars. For example, opening a long trade to buy EUR / GPB is equivalent to buying EUR / USD and selling GPB / USD. Cross-currency pairs generally carry a higher transaction cost.
When you open a new account margin with a Forex broker, you must deposit a minimum amount of money to your broker. This minimum varies depending on each broker and can be as low as € / $ 100 at higher amounts. Each time a new trade is executed a percentage of your account margin balance will be the initial margin required for a new trade based on the underlying currency pair, current price, and the number of units (or lots) of the trade. . For example, let's say you open a mini account which gives you a leverage of 1: 200 or a margin of 0.5%. Mini accounts work with mini lots. Suppose a mini lot equals $ 10,000. If you are about to open a mini lot, instead of having to invest $ 10,000, you will only need $ 50 ($ 10,000 x 0.5% = $ 50).
Leverage is the ratio of the capital used in a transaction to the required deposit. It is the ability to control large amounts of dollars with relatively less capital. Leverage varies drastically depending on the broker, it can go from 1: 2 to even 1: 2000. The most common level of leverage in Forex can currently be around 1: 200.
• Margin + leverage = dangerous combination
Trading currencies on margin allows you to increase your buying power. This means that if you have $ 5,000 in account margin that allows you a 1: 100 leverage, you can then buy $ 500,000 in foreign exchange as you only have to invest a percentage of the purchase price. Another way of saying this is that you have $ 500,000 in purchasing power. With more purchasing power you can greatly increase your potential profits without an outlay of cash. But be careful, working with a high margin increases your profits but also your losses if the trade does not progress in your favor. >>> Forex Signals With Unbeatable Performance: Verified Forex Results And 5° Rated OnInvesting.com|Free Forex Signals Trial:CLICK HERE TO JOIN FOR FREE
Trader Rookie Position Size Forex Calculator, need some feedback on a browser extension
Hey Community! I am super excited to finally have my browser extension live for anyone to download for Google Chrome and Microsoft Edge. I would love to get support and feedback on the extension! ❓Why I built the Trader Rookie Position Size Forex Calculator❓ I am dedicated to day trading and trading the foreign exchange markets. I have recently launched https://traderrookie.com to share content for aspiring daytraders and help people get started in the exciting world of trading. In the long run, I am looking to build supplementing income for my trading career. Personally I have always been frustrated with the RISK management tools available to traders, so I have developed a position size calculator that lets you calculated position sizes for any forex, commodity, or index pair. How it works: You set your entry, stop loss, and up to 3 separate take-profit targets, and the calculator calculates your risk size in lots or units based on account size and risk tolerance. The calculator's user interface synchronizes instantly across browser tabs and lets you calculate position sizes on top of a charting package like TradingView and then execute the trade with your broker in another browser window OR with desktop software like Metatrader or similar. https://preview.redd.it/m001kyth6nf51.png?width=920&format=png&auto=webp&s=f16aa3993e427eeca0a802ae5f47a7e34e3d7b1d The extension can be downloaded here: Chrome web shop:https://chrome.google.com/webstore/detail/trader-rookie-position-si/kcdjnmmjcnbpbjiemhcdiblekmpnbgec?hl=da&authuser=1 Edge Add-ons:https://microsoftedge.microsoft.com/addons/detail/trader-rookie-position-si/addmhmcfpoimgajbbeckdghdpoeobipc The extension features an add banner.Right now it has an add for the Extension, but I would like to promote content from my webpage like articles and other free stuff for traders. I have a long list of additional features I would love to implement in the extension in later versions, but for now I am happy to have the first version ready for my audience. If you're curious, check my page out at https://traderrookie.com
I have created a new strategy that manages risks decently. If anyone sees any flaws please say so, I am still a beginner and want some feed back in this. I do 3 different types of trades. Day long/overnight, hours, and session trades Day long/overnight- pretty self explanatory Hours- over the course of 2-8 hours Session- Literally watch as the rates change For Day long trades I put a lot size of 0.10% of my total balance and calculate a stop loss from the time of the trade to when I would lose 7.5% of my acct, this leaves a lot of time for the market to shift back in my favor if it does go the opposite way for a bit. I set notifications with the SwissForex app for every 100 pips that the trade goes in my favor (ex. 108.700, 108.800, 108.900) and as soon as the exchange rate goes even 5 pips into profit, I change the stop loss to slightly above breaking even, and change it every 100 pips. I set a notification as well for when it gets within 15 pips of my take profit number so I can change the number to higher and bring the stop loss number even close. (No more than 2 at a time) For hours trades it is the same exact strategy as day long except the lot size is slightly bigger at 0.15% of my total balance, this gives it a little less time to sway back in your direction if you predict where it is going wrong. Other then that it is the exact same (No more than 2 at a time if there is a session trade going, if not 3) For session trades you wont take your eyes off the trade and they are a lot shorter. I use a lot size of 0.25-0.5% of my total balance and calculate a stop loss front the time of trade to cancel after I would lose 10% of the account, this would leave a lot of time for it to sway back in your direction if it happens to go the wrong way. As soon as the exchange rate goes 3-5 pips in your favor, change the stop loss slightly higher and closer, every time as it slowly rises. You don’t want to put the stop loss too close to the current rate and be greedy, just in case there is a slightly drop, for it to only rise again faster. (I like to stay 5-8 pips behind it after I am guaranteed profit) At the end of every week I withdrawal 30% of the profit and keep the other 70% to grow the account, cause as the balance gets bigger, those percentages stay the same, keep the same consistency, and make more money exponentially as it grows. Once again I am still a novice at forex and still learning my ways to do things and manage risk/reward strategies. Any feedback on this would be greatly appreciated,
Which are your Top 5 favourite coins out of the Top 100? An analysis.
I am putting together my investment portfolio for 2018 and made a complete summary of the current Top 100. Interestingly, I noticed that all coins can be categorized into 12 markets. Which markets do you think will play the biggest role in the coming year? Here is a complete overview of all coins in an excel sheet including name, market, TPS, risk profile, time since launch (negative numbers mean that they are launching that many months in the future) and market cap. You can also sort by all of these fields of course. Coins written in bold are the strongest contenders within their market either due to having the best technology or having a small market cap and still excellent technology and potential. https://docs.google.com/spreadsheets/d/1s8PHcNvvjuy848q18py_CGcu8elRGQAUIf86EYh4QZo/edit#gid=0 The 12 markets are
Currency 13 coins
Platform 25 coins
Ecosystem 9 coins
Privacy 10 coins
Currency Exchange Tool 8 coins
Gaming & Gambling 5 coins
Misc 15 coins
Social Network 4 coins
Fee Token 3 coins
Decentralized Data Storage 4 coins
Cloud Computing 3 coins
Stable Coin 2 coins
Before we look at the individual markets, we need to take a look of the overall market and its biggest issue scalability first: Cryptocurrencies aim to be a decentralized currency that can be used worldwide. Its goal is to replace dollar, Euro, Yen, all FIAT currencies worldwide. The coin that will achieve that will be worth several trillion dollars. Bitcoin can only process 7 transactions per second (TPS). In order to replace all FIAT, it would need to perform at at least VISA levels, which usually processes around 3,000 TPS, up to 25,000 TPS during peak times and a maximum of 64,000 TPS. That means that this cryptocurrency would need to be able to perform at least several thousand TPS. However, a ground breaking technology should not look at current technology to set a goal for its use, i.e. estimating the number of emails sent in 1990 based on the number of faxes sent wasn’t a good estimate. For that reason, 10,000 TPS is the absolute baseline for a cryptocurrency that wants to replace FIAT. This brings me to IOTA, which wants to connect all 80 billion IoT devices that are expected to exist by 2025, which constantly communicate with each other, creating 80 billion or more transactions per second. This is the benchmark that cryptocurrencies should be aiming for. Currently, 8 billion devices are connected to the Internet. With its Lightning network recently launched, Bitcoin is realistically looking at 50,000 possible soon. Other notable cryptocurrencies besides IOTA and Bitcoin are Nano with 7,000 TPS already tested, Dash with several billion TPS possible with Masternodes, Neo, LISK and RHOC with 100,000 TPS by 2020, Ripple with 50,000 TPS, Ethereum with 10,000 with Sharding. However, it needs to be said that scalability usually goes at the cost of decentralization and security. So, it needs to be seen, which of these technologies can prove itself resilient and performant. Without further ado, here are the coins of the first market
Market 1 - Currency:
Bitcoin: 1st generation blockchain with currently bad scalability currently, though the implementation of the Lightning Network looks promising and could alleviate most scalability concerns, scalability and high energy use.
Ripple: Centralized currency that might become very successful due to tight involvement with banks and cross-border payments for financial institutions; banks and companies like Western Union and Moneygram (who they are currently working with) as customers customers. However, it seems they are aiming for more decentralization now.https://ripple.com/dev-blog/decentralization-strategy-update/. Has high TPS due to Proof of Correctness algorithm.
Bitcoin Cash: Bitcoin fork with the difference of having an 8 times bigger block size, making it 8 times more scalable than Bitcoin currently. Further block size increases are planned. Only significant difference is bigger block size while big blocks lead to further problems that don't seem to do well beyond a few thousand TPS. Opponents to a block size argue that increasing the block size limit is unimaginative, offers only temporary relief, and damages decentralization by increasing costs of participation. In order to preserve decentralization, system requirements to participate should be kept low. To understand this, consider an extreme example: very big blocks (1GB+) would require data center level resources to validate the blockchain. This would preclude all but the wealthiest individuals from participating.Community seems more open than Bitcoin's though.
Litecoin : Little brother of Bitcoin. Bitcoin fork with different mining algorithm but not much else.Copies everything that Bitcoin does pretty much. Lack of real innovation.
Dash: Dash (Digital Cash) is a fork of Bitcoin and focuses on user ease. It has very fast transactions within seconds, low fees and uses Proof of Service from Masternodes for consensus. They are currently building a system called Evolution which will allow users to send money using usernames and merchants will find it easy to integrate Dash using the API. You could say Dash is trying to be a PayPal of cryptocurrencies. Currently, cryptocurrencies must choose between decentralization, speed, scalability and can pick only 2. With Masternodes, Dash picked speed and scalability at some cost of decentralization, since with Masternodes the voting power is shifted towards Masternodes, which are run by Dash users who own the most Dash.
IOTA: 3rd generation blockchain called Tangle, which has a high scalability, no fees and instant transactions. IOTA aims to be the connective layer between all 80 billion IOT devices that are expected to be connected to the Internet in 2025, possibly creating 80 billion transactions per second or 800 billion TPS, who knows. However, it needs to be seen if the Tangle can keep up with this scalability and iron out its security issues that have not yet been completely resolved.
Nano: 3rd generation blockchain called Block Lattice with high scalability, no fees and instant transactions. Unlike IOTA, Nano only wants to be a payment processor and nothing else, for now at least. With Nano, every user has their own blockchain and has to perform a small amount of computing for each transaction, which makes Nano perform at 300 TPS with no problems and 7,000 TPS have also been tested successfully. Very promising 3rd gen technology and strong focus on only being the fastest currency without trying to be everything.
Decred: As mining operations have grown, Bitcoin’s decision-making process has become more centralized, with the largest mining companies holding large amounts of power over the Bitcoin improvement process. Decred focuses heavily on decentralization with their PoW Pos hybrid governance system to become what Bitcoin was set out to be. They will soon implement the Lightning Network to scale up. While there do not seem to be more differences to Bitcoin besides the novel hybrid consensus algorithm, which Ethereum, Aeternity and Bitcoin Atom are also implementing, the welcoming and positive Decred community and professoinal team add another level of potential to the coin.
Aeternity: We’ve seen recently, that it’s difficult to scale the execution of smart contracts on the blockchain. Crypto Kitties is a great example. Something as simple as creating and trading unique assets on Ethereum bogged the network down when transaction volume soared. Ethereum and Zilliqa address this problem with Sharding. Aeternity focuses on increasing the scalability of smart contracts and dapps by moving smart contracts off-chain. Instead of running on the blockchain, smart contracts on Aeternity run in private state channels between the parties involved in the contracts. State channels are lines of communication between parties in a smart contract. They don’t touch the blockchain unless they need to for adjudication or transfer of value. Because they’re off-chain, state channel contracts can operate much more efficiently. They don’t need to pay the network for every time they compute and can also operate with greater privacy. An important aspect of smart contract and dapp development is access to outside data sources. This could mean checking the weather in London, score of a football game, or price of gold. Oracles provide access to data hosted outside the blockchain. In many blockchain projects, oracles represent a security risk and potential point of failure, since they tend to be singular, centralized data streams. Aeternity proposes decentralizing oracles with their oracle machine. Doing so would make outside data immutable and unchangeable once it reaches Aeternity’s blockchain. Of course, the data source could still be hacked, so Aeternity implements a prediction market where users can bet on the accuracy and honesty of incoming data from various oracles.It also uses prediction markets for various voting and verification purposes within the platform. Aeternity’s network runs on on a hybrid of proof of work and proof of stake. Founded by a long-time crypto-enthusiast and early colleague of Vitalik Buterin, Yanislav Malahov. Promising concept though not product yet
Bitcoin Atom: Atomic Swaps and hybrid consenus. This looks like the only Bitcoin clone that actually is looking to innovate next to Bitcoin Cash.
Dogecoin: Litecoin fork, fantastic community, though lagging behind a bit in technology.
Bitcoin Gold: A bit better security than bitcoin through ASIC resistant algorithm, but that's it. Not that interesting.
Digibyte: Digibyte's PoS blockchain is spread over a 100,000+ servers, phones, computers, and nodes across the globe, aiming for the ultimate level of decentralization. DigiByte rebalances the load between the five mining algorithms by adjusting the difficulty of each so one algorithm doesn’t become dominant. The algorithm's asymmetric difficulty has gained notoriety and been deployed in many other blockchains.DigiByte’s adoption over the past four years has been slow. It’s still a relatively obscure currency compared its competitors. The DigiByte website offers a lot of great marketing copy and buzzwords. However, there’s not much technical information about what they have planned for the future. You could say Digibyte is like Bitcoin, but with shorter blocktimes and a multi-algorithm. However, that's not really a difference big enough to truly set themselves apart from Bitcoin, since these technologies could be implemented by any blockchain without much difficulty. Their decentralization is probably their strongest asset, however, this also change quickly if the currency takes off and big miners decide to go into Digibyte.
Bitcoin Diamond Asic resistant Bitcoin and Copycat
Market 2 - Platform
Most of the cryptos here have smart contracts and allow dapps (Decentralized apps) to be build on their platform and to use their token as an exchange of value between dapp services.
Ethereum: 2nd generation blockchain that allows the use of smart contracts. Bad scalability currently, though this concern could be alleviated by the soon to be implemented Lightning Network aka Plasma and its Sharding concept.
EOS: Promising technology that wants to be able do everything, from smart contracts like Ethereum, scalability similar to Nano with 1000 tx/second + near instant transactions and zero fees, to also wanting to be a platform for dapps. However, EOS doesn't have a product yet and everything is just promises still. Highly overvalued right now. However, there are lots of red flags, have dumped $500 million Ether over the last 2 months and possibly bought back EOS to increase the size of their ICO, which has been going on for over a year and has raised several billion dollars. All in all, their market cap is way too high for that and not even having a product.
Cardano: Similar to Ethereum/EOS, however, only promises made with no delivery yet, highly overrated right now. Interesting concept though. Market cap way too high for not even having a product. Somewhat promising technology.
VeChain: Singapore-based project that’s building a business enterprise platform and inventory tracking system. Examples are verifying genuine luxury goods and food supply chains. Has one of the strongest communities in the crypto world. Most hyped token of all, with merit though.
Neo: Neo is a platform, similar to Eth, but more extensive, allowing dapps and smart contracts, but with a different smart contract gas system, consensus mechanism (PoS vs. dBfT), governance model, fixed vs unfixed supply, expensive contracts vs nearly free contracts, different ideologies for real world adoption. There are currently only 9 nodes, each of which are being run by a company/entity hand selected by the NEO council (most of which are located in china) and are under contract. This means that although the locations of the nodes may differ, ultimately the neo council can bring them down due to their legal contracts. In fact this has been done in the past when the neo council was moving 50 million neo that had been locked up. Also dbft (or neo's implmentation of it) has failed underload causing network outages during major icos. The first step in decentralization is that the NEO Counsel will select trusted nodes (Universities, business partners, etc.) and slowly become less centralized that way. The final step in decentralization will be allowing NEO holders to vote for new nodes, similar to a DPoS system (ARK/EOS/LISK). NEO has a regulation/government friendly ideology. Finally they are trying to work undewith the Chinese government in regards to regulations. If for some reason they wanted it shut down, they could just shut it down.
Stellar: PoS system, similar goals as Ripple, but more of a platform than only a currency. 80% of Stellar are owned by Stellar.org still, making the currency centralized.
Ethereum classic: Original Ethereum that decided not to fork after a hack. The Ethereum that we know is its fork. Uninteresing, because it has a lot of less resources than Ethereum now and a lot less community support.
Ziliqa: Zilliqa is building a new way of sharding. 2400 tpx already tested, 10,000 tps soon possible by being linearly scalable with the number of nodes. That means, the more nodes, the faster the network gets. They are looking at implementing privacy as well.
QTUM: Enables Smart contracts on the Bitcoin blockchain. Useful.
Icon: Korean ethereum. Decentralized application platform that's building communities in partnership with banks, insurance providers, hospitals, and universities. Focused on ID verification and payments. No big differentiators to the other 20 Ethereums, except that is has a product. That is a plus. Maybe cheap alternative to Ethereum.
LISK: Lisk's difference to other BaaS is that side chains are independent to the main chain and have to have their own nodes. Similar to neo whole allows dapps to deploy their blockchain to. However, Lisk is currently somewhat centralized with a small group of members owning more than 50% of the delegated positions. Lisk plans to change the consensus algorithm for that reason in the near future.
Rchain: Similar to Ethereum with smart contract, though much more scalable at an expected 40,000 TPS and possible 100,000 TPS. Not launched yet. No product launched yet, though promising technology. Not overvalued, probably at the right price right now.
ARDR: Similar to Lisk. Ardor is a public blockchain platform that will allow people to utilize the blockchain technology of Nxt through the use of child chains. A child chain, which is a ‘light’ blockchain that can be customized to a certain extent, is designed to allow easy self-deploy for your own blockchain. Nxt claims that users will "not need to worry" about security, as that part is now handled by the main chain (Ardor). This is the chief innovation of Ardor. Ardor was evolved from NXT by the same company. NEM started as a NXT clone.
Ontology: Similar to Neo. Interesting coin
Bytom: Bytom is an interactive protocol of multiple byte assets. Heterogeneous byte-assets (indigenous digital currency, digital assets) that operate in different forms on the Bytom Blockchain and atomic assets (warrants, securities, dividends, bonds, intelligence information, forecasting information and other information that exist in the physical world) can be registered, exchanged, gambled and engaged in other more complicated and contract-based interoperations via Bytom.
Nxt: Similar to Lisk
Stratis: Different to LISK, Stratis will allow businesses and organizations to create their own blockchain according to their own needs, but secured on the parent Stratis chain. Stratis’s simple interface will allow organizations to quickly and easily deploy and/or test blockchain functionality of the Ethereum, BitShares, BitCoin, Lisk and Stratis environements.
Status: Status provides access to all of Ethereum’s decentralized applications (dapps) through an app on your smartphone. It opens the door to mass adoption of Ethereum dapps by targeting the fastest growing computer segment in the world – smartphone users.16. Ark: Fork of Lisk that focuses on a smaller feature set. Ark wallets can only vote for one delegate at a time which forces delegates to compete against each other and makes cartel formations incredibly hard, if not impossible.
Neblio: Similar to Neo, but 30x smaller market cap.
NEM: Is similar to Neo No marketing team, very high market cap for little clarilty what they do.
Bancor: Bancor is a Decentralized Liquidity Network that allows you to hold any Ethereum token and convert it to any other token in the network, with no counter party, at an automatically calculated price, using a simple web wallet.
Dragonchain: The Purpose of DragonChain is to help companies quickly and easily incorporate blockchain into their business applications. Many companies might be interested in making this transition because of the benefits associated with serving clients over a blockchain – increased efficiency and security for transactions, a reduction of costs from eliminating potential fraud and scams, etc.
Skycoin: Transactions with zero fees that take apparently two seconds, unlimited transaction rate, no need for miners and block rewards, low power usage, all of the usual cryptocurrency technical vulnerabilities fixed, a consensus mechanism superior to anything that exists, resistant to all conceivable threats (government censorship, community infighting, cybenucleaconventional warfare, etc). Skycoin has their own consensus algorithm known as Obelisk written and published academically by an early developer of Ethereum. Obelisk is a non-energy intensive consensus algorithm based on a concept called ‘web of trust dynamics’ which is completely different to PoW, PoS, and their derivatives. Skywire, the flagship application of Skycoin, has the ambitious goal of decentralizing the internet at the hardware level and is about to begin the testnet in April. However, this is just one of the many facets of the Skycoin ecosystem. Skywire will not only provide decentralized bandwidth but also storage and computation, completing the holy trinity of commodities essential for the new internet. Skycion a smear campaign launched against it, though they seem legit and reliable. Thus, they are probably undervalued.
Market 3 - Ecosystem
The 3rd market with 11 coins is comprised of ecosystem coins, which aim to strengthen the ease of use within the crypto space through decentralized exchanges, open standards for apps and more
Nebulas: Similar to how Google indexes webpages Nebulas will index blockchain projects, smart contracts & data using the Nebulas rank algorithm that sifts & sorts the data. Developers rewarded NAS to develop & deploy on NAS chain. Nebulas calls this developer incentive protocol – basically rewards are issued based on how often dapp/contract etc. is used, the more the better the rewards and Proof of devotion. Works like DPoS except the best, most economically incentivised developers (Bookkeeppers) get the forging spots. Ensuring brains stay with the project (Cross between PoI & PoS). 2,400 TPS+, DAG used to solve the inter-transaction dependencies in the PEE (Parallel Execution Environment) feature, first crypto Wallet that supports the Lightening Network.
Waves: Decentralized exchange and crowdfunding platform. Let’s companies and projects to issue and manage their own digital coin tokens to raise money.
Salt: Leveraging blockchain assets to secure cash loands. Plans to offer cash loans in traditional currencies, backed by your cryptocurrency assets. Allows lenders worldwide to skip credit checks for easier access to affordable loans.
CHAINLINK: ChainLink is a decentralized oracle service, the first of its kind. Oracles are defined as an ‘agent’ that finds and verifies real-world occurrences and submits this information to a blockchain to be used in smart contracts.With ChainLink, smart contract users can use the network’s oracles to retrieve data from off-chain application program interfaces (APIs), data pools, and other resources and integrate them into the blockchain and smart contracts. Basically, ChainLink takes information that is external to blockchain applications and puts it on-chain. The difference to Aeternity is that Chainlink deploys the smart contracts on the Ethereum blockchain while Aeternity has its own chain.
WTC: Combines blockchain with IoT to create a management system for supply chains Interesting
Ethos unifyies all cryptos. Ethos is building a multi-cryptocurrency phone wallet. The team is also building an investment diversification tool and a social network
Aion: Aion is the token that pays for services on the Aeternity platform.
USDT: is no cryptocurrency really, but a replacement for dollar for trading After months of asking for proof of dollar backing, still no response from Tether.
Market 4 - Privacy
The 4th market are privacy coins. As you might know, Bitcoin is not anonymous. If the IRS or any other party asks an exchange who is the identity behind a specific Bitcoin address, they know who you are and can track back almost all of the Bitcoin transactions you have ever made and all your account balances. Privacy coins aim to prevent exactly that through address fungability, which changes addresses constantly, IP obfuscation and more. There are 2 types of privacy coins, one with completely privacy and one with optional privacy. Optional Privacy coins like Dash and Nav have the advantage of more user friendliness over completely privacy coins such as Monero and Enigma.
Monero: Currently most popular privacy coin, though with a very high market cap. Since their privacy is all on chain, all prior transactions would be deanonymized if their protocol is ever cracked. This requires a quantum computing attack though. PIVX is better in that regard.
Zcash: A decentralized and open-source cryptocurrency that hide the sender, recipient, and value of transactions. Offers users the option to make transactions public later for auditing. Decent privacy coin, though no default privacy
Verge: Calls itself privacy coin without providing private transactions, multiple problems over the last weeks has a toxic community, and way too much hype for what they have.
Bytecoin: First privacy-focused cryptocurrency with anonymous transactions. Bytecoin’s code was later adapted to create Monero, the more well-known anonymous cryptocurrency. Has several scam accusations, 80% pre-mine, bad devs, bad tech
Bitcoin Private: A merge fork of Bitcoin and Zclassic with Zclassic being a fork of Zcash with the difference of a lack of a founders fee required to mine a valid block. This promotes a fair distribution, preventing centralized coin ownership and control. Bitcoin private offers the optional ability to keep the sender, receiver, and amount private in a given transaction. However, this is already offered by several good privacy coins (Monero, PIVX) and Bitcoin private doesn't offer much more beyond this.
Komodo: The Komodo blockchain platform uses Komodo’s open-source cryptocurrency for doing transparent, anonymous, private, and fungible transactions. They are then made ultra-secure using Bitcoin’s blockchain via a Delayed Proof of Work (dPoW) protocol and decentralized crowdfunding (ICO) platform to remove middlemen from project funding. Offers services for startups to create and manage their own Blockchains.
PIVX: As a fork of Dash, PIVX uses an advanced implementation of the Zerocoin protocol to provide it’s privacy. This is a form of zeroknowledge proofs, which allow users to spend ‘Zerocoins’ that have no link back to them. Unlike Zcash u have denominations in PIVX, so they can’t track users by their payment amount being equal to the amount of ‘minted’ coins, because everyone uses the same denominations. PIVX is also implementing Bulletproofs, just like Monero, and this will take care of arguably the biggest weakness of zeroknowledge protocols: the trusted setup.
Zcoin: PoW cryptocurrency. Private financial transactions, enabled by the Zerocoin Protocol. Zcoin is the first full implementation of the Zerocoin Protocol, which allows users to have complete privacy via Zero-Knowledge cryptographic proofs.
Enigma: Monero is to Bitcoin what enigma is to Ethereum. Enigma is for making the data used in smart contracts private. More of a platform for dapps than a currency like Monero. Very promising.
Navcoin: Like bitcoin but with added privacy and pos and 1,170 tps, but only because of very short 30 second block times. Though, privacy is optional, but aims to be more user friendly than Monero. However, doesn't really decide if it wants to be a privacy coin or not. Same as Zcash.Strong technology, non-shady team.
Tenx: Raised 80 million, offers cryptocurrency-linked credit cards that let you spend virtual money in real life. Developing a series of payment platforms to make spending cryptocurrency easier. However, the question is if full privacy coins will be hindered in growth through government regulations and optional privacy coins will become more successful through ease of use and no regulatory hindrance.
Market 5 - Currency Exchange Tool
Due to the sheer number of different cryptocurrencies, exchanging one currency for the other it still cumbersome. Further, merchants don’t want to deal with overcluttered options of accepting cryptocurrencies. This is where exchange tool like Req come in, which allow easy and simple exchange of currencies.
Cryptonex: Fiat and currency exchange between various blockchain services, similar to REQ.
QASH: Qash is used to fuel its liquid platform which will be an exchange that will distribute their liquidity pool. Its product, the Worldbook is a multi-exchange order book that matches crypto to crypto, and crypto to fiat and the reverse across all currencies. E.g., someone is selling Bitcoin is USD on exchange1 not owned by Quoine and someone is buying Bitcoin in EURO on exchange 2 not owned by Quoine. If the forex conversions and crypto conversions match then the trade will go through and the Worldbook will match it, it'll make the sale and the purchase on either exchange and each user will get what they wanted, which means exchanges with lower liquidity if they join the Worldbook will be able to fill orders and take trade fees they otherwise would miss out on.They turned it on to test it a few months ago for an hour or so and their exchange was the top exchange in the world by 4x volume for the day because all Worldbook trades ran through it. Binance wants BNB to be used on their one exchange. Qash wants their QASH token embedded in all of their partners. More info here https://www.reddit.com/CryptoCurrency/comments/8a8lnwhich_are_your_top_5_favourite_coins_out_of_the/dwyjcbb/?context=3
Kyber: network Exchange between cryptocurrencies, similar to REQ. Features automatic coin conversions for payments. Also offers payment tools for developers and a cryptocurrency wallet.
Achain: Building a boundless blockchain world like Req .
Req: Exchange between cryptocurrencies.
Bitshares: Exchange between cryptocurrencies. Noteworthy are the 1.5 second average block times and throughput potential of 100,000 transactions per second with currently 2,400 TPS having been proven. However, bitshares had several Scam accusations in the past.
Loopring: A protocol that will enable higher liquidity between exchanges and personal wallets.
ZRX: Open standard for dapps. Open, permissionless protocol allowing for ERC20 tokens to be traded on the Ethereum blockchain. In 0x protocol, orders are transported off-chain, massively reducing gas costs and eliminating blockchain bloat. Relayers help broadcast orders and collect a fee each time they facilitate a trade. Anyone can build a relayer.
Market 6 - Gaming
With an industry size of $108B worldwide, Gaming is one of the largest markets in the world. For sure, cryptocurrencies will want to have a share of that pie.
Storm: Mobile game currency on a platform with 9 million players.
Fun: A platform for casino operators to host trustless, provably-fair gambling through the use of smart contracts, as well as creating their own implementation of state channels for scalability.
Electroneum: Mobile game currency They have lots of technical problems, such as several 51% attacks
Wax: Marketplace to trade in-game items
Market 7 - Misc
There are various markets being tapped right now. They are all summed up under misc.
OMG: Omise is designed to enable financial services for people without bank accounts. It works worldwide and with both traditional money and cryptocurrencies.
Power ledger: Australian blockchain-based cryptocurrency and energy trading platform that allows for decentralized selling and buying of renewable energy. Unique market and rather untapped market in the crypto space.
Populous: A platform that connects business owners and invoice buyers without middlemen. Invoice sellers get cash flow to fund their business and invoice buyers earn interest. Similar to OMG, small market.
Monacoin: The first Japanese cryptocurrency. Focused on micro-transactions and based on a popular internet meme of a type-written cat. This makes it similar to Dogecoin. Very niche, tiny market.
Revain: Legitimizing reviews via the blockchain. Interesting concept, though market not as big.
Augur: Platform to forecast and make wagers on the outcome of real-world events (AKA decentralized predictions). Uses predictions for a “wisdom of the crowd” search engine. Not launched yet.
Substratum: Revolutionzing hosting industry via per request billing as a decentralized internet hosting system. Uses a global network of private computers to create the free and open internet of the future. Participants earn cryptocurrency. Interesting concept.
Veritaseum: Is supposed to be a peer to peer gateway, though it looks like very much like a scam.
TRON: Tronix is looking to capitalize on ownership of internet data to content creators. However, they plagiarized their white paper, which is a no go. They apologized, so it needs to be seen how they will conduct themselves in the future. Extremely high market cap for not having a product, nor proof of concept.
Syscoin: A cryptocurrency with a decentralized marketplace that lets people buy and sell products directly without third parties. Trying to remove middlemen like eBay and Amazon.
Hshare: Most likely scam because of no code changes, most likely pump and dump scheme, dead community.
BAT: An Ethereum-based token that can be exchanged between content creators, users, and advertisers. Decentralized ad-network that pays based on engagement and attention.
Dent: Decentralizeed exchange of mobile data, enabling mobile data to be marketed, purchased or distributed, so that users can quickly buy or sell data from any user to another one.
Ncash: End to end encrypted Identification system for retailers to better serve their customers .
Factom Secure record-keeping system that allows companies to store their data directly on the Blockchain. The goal is to make records more transparent and trustworthy .
Market 8 - Social network
Web 2.0 is still going strong and Web 3.0 is not going to ignore it. There are several gaming tokens already out there and a few with decent traction already, such as Steem, which is Reddit with voting through money is a very interesting one.
Mithril: As users create content via social media, they will be rewarded for their contribution, the better the contribution, the more they will earn
Steem: Like Reddit, but voting with money. Already launched product and Alexa rank 1,000 Thumbs up.
Rdd: Reddcoin makes the process of sending and receiving money fun and rewarding for everyone. Reddcoin is dedicated to one thing – tipping on social networks as a way to bring cryptocurrency awareness and experience to the general public.
Kin: Token for the platform Kik. Kik has a massive user base of 400 million people. Replacing paying with FIAT with paying with KIN might get this token to mass adoption very quickly.
Market 9 - Fee token
Popular exchanges realized that they can make a few billion dollars more by launching their own token. Owning these tokens gives you a reduction of trading fees. Very handy and BNB (Binance Coin) has been one of the most resilient tokens, which have withstood most market drops over the last weeks and was among the very few coins that could show growth.
BNB: Fee token for Binance
Gas: Not a Fee token for an exchange, but it is a dividend paid out on Neo and a currency that can be used to purchase services for dapps.
Kucoin: Fee token for Kucoin
Market 10 - Decentralized Data Storage
Currently, data storage happens with large companies or data centers that are prone to failure or losing data. Decentralized data storage makes loss of data almost impossible by distributing your files to numerous clients that hold tiny pieces of your data. Remember Torrents? Torrents use a peer-to-peer network. It is similar to that. Many users maintain copies of the same file, when someone wants a copy of that file, they send a request to the peer-to-peer network., users who have the file, known as seeds, send fragments of the file to the requester., he requester receives many fragments from many different seeds, and the torrent software recompiles these fragments to form the original file.
Gbyte: Byteball data is stored and ordered using directed acyclic graph (DAG) rather than blockchain. This allows all users to secure each other's data by referencing earlier data units created by other users, and also removes scalability limits common for blockchains, such as blocksize issue.
Siacoin: Siacoin is decentralized storage platform. Distributes encrypted files to thousands of private users who get paid for renting out their disk space. Anybody with siacoins can rent storage from hosts on Sia. This is accomplish via "smart" storage contracts stored on the Sia blockchain. The smart contract provides a payment to the host only after the host has kept the file for a given amount of time. If the host loses the file, the host does not get paid.
Maidsafecoin: MaidSafe stands for Massive Array of Internet Disks, Secure Access for Everyone.Instead of working with data centers and servers that are common today and are vulnerable to data theft and monitoring, SAFE’s network uses advanced P2P technology to bring together the spare computing capacity of all SAFE users and create a global network. You can think of SAFE as a crowd-sourced internet. All data and applications reside in this network. It’s an autonomous network that automatically sets prices and distributes data and rents out hard drive disk space with a Blockchain-based storage solutions.When you upload a file to the network, such as a photo, it will be broken into pieces, hashed, and encrypted. The data is then randomly distributed across the network. Redundant copies of the data are created as well so that if someone storing your file turns off their computer, you will still have access to your data. And don’t worry, even with pieces of your data on other people’s computers, they won’t be able to read them. You can earn MadeSafeCoins by participating in storing data pieces from the network on your computer and thus earning a Proof of Resource.
Storj: Storj aims to become a cloud storage platform that can’t be censored or monitored, or have downtime. Your files are encrypted, shredded into little pieces called 'shards', and stored in a decentralized network of computers around the globe. No one but you has a complete copy of your file, not even in an encrypted form.
Market 11 - Cloud computing
Obviously, renting computing power, one of the biggest emerging markets as of recent years, e.g. AWS and Digital Ocean, is also a service, which can be bought and managed via the blockchain.
Golem: Allows easy use of Supercomputer in exchange for tokens. People worldwide can rent out their computers to the network and get paid for that service with Golem tokens.
Elf: Allows easy use of Cloud computing in exchange for tokens.
Market 12 - Stablecoin
Last but not least, there are 2 stablecoins that have established themselves within the market. A stable coin is a coin that wants to be independent of the volatility of the crypto markets. This has worked out pretty well for Maker and DGD, accomplished through a carefully diversified currency fund and backing each token by 1g or real gold respectively. DO NOT CONFUSE DGD AND MAKER with their STABLE COINS DGX and DAI. DGD and MAKER are volatile, because they are the companies of DGX and DAI. DGX and DAI are the stable coins.
DGD: Platform of the Stablecoin DGX. Every DGX coin is backed by 1g of gold and make use proof of asset consensus.
Maker: Platform of the Stablecoin DAI that doesn't vary much in price through widespread and smart diversification of assets.
EDIT: Added a risk factor from 0 to 10. The baseline is 2 for any crypto. Significant scandals, mishaps, shady practices, questionable technology, increase the risk factor. Not having a product yet automatically means a risk factor of 6. Strong adoption and thus strong scrutiny or positive community lower the risk factor. EDIT2: Added a subjective potential factor from 0 to 10, where its overall potential and a small or big market cap is factored in. Bitcoin with lots of potential only gets a 9, because of its massive market cap, because if Bitcoin goes 10x, smaller coins go 100x, PIVX gets a 10 for being as good as Monero while carrying a 10x smaller market cap, which would make PIVX go 100x if Monero goes 10x.
If you are interested in forex trading and don’t know where to start, then you are at the right place to learn about forex trading. In this series of blogs, I will be discussing couple of basic terms to know before diving into forex trading. One of the most commonly used term in forex is “ https://bizztrade.com/ ” or known otherwise as “Point in Percentage”. We shall look into detail what exactly is PIP, how can it be calculated and what is its benefits in forex trading. Defining PIP In forex, fluctuations of currency prices are quite minor and thus, they are measured in decimal points. A pip is considered as an incremental price movement with specific value dependent on the forex market. This standardized size of pip protects investors with huge losses. In some cases, a pip consists of the fourth decimal point of a price that is equal to 1/100th of 1%. For example, if EUR / USD moves from 1.07172 to 1.07182 then the difference in the rise in value which is 0.0001 USD equals to 1 pip. Defining Pipette Many brokers quote the value of pips in “5 and 3” rather than “2 and 4” which denotes the pip values in a fraction. These fraction values are called pipettes. Each fractional pip equals to “one tenth of a pip”. Each value of the pip or pipette will differ based on the currency that the investotrader has opened in. In a way, we can say that a pip value enables us to calculate the profit and loss before diving in to forex trading. Calculation of PIP PIP values varies based on the currency pairs that you are trading in. It also depends on the base currency and counter currency. The pip value is calculate via the simple formula as shown below: (size of a pip) x (base currency) = PIP value Another example of understanding what a pip value is that if GBP/USD moves from 1.30542 to 1.30543, then the 0.00001 USD increase is 1 pip value. Lets look at another example which denotes the calculation of PIP value in forex trading. We will consider the example of USD/JPY. In this case, the value of PIP depends on the exchange rate of USD/JPY. Suppose that the buy price for USD/JPY is 106.20 and the lot size is 10,000, using the above mentioned formula, the value of the pip will be 0.94 USD. Likewise, if you buy 10,000 USD at the rate of 106.20 yen and you earn $0.94 for every pip value increase. If you sold that same pip at 106.40 yen, then you gain profit of $18.80 but if you sold at 106.00, then you will lose $18.80. Now that you have understood what exactly is pip and pipette and how to calculate the value of pip before diving deeper into the world of forex trading, be very careful before investing money into money into currency where fluctuation levels are minimal in order to avoid losing your money.
New stars: looking at possible OMG staking revenues with regards to # of transactions instead of volume.
We have an expression in Sweden which translated directly to English becomes “Aim for the stars and you might end up in the tree tops.”. This is my attempt at giving us some new stars to take aim for.
I will start by saying that I’m 100 % in OMG and that this is not a technical analysis of the future price movement, nor is it an analysis of OmiseGO’s potential of delivering what they have promised. This is simply a new way of looking at the future rewards to the stakers of OMG.
Secondly, this is not a finished product and the approximations that I’ve done can surely be improved by people with more knowledge than me about the subjects. I welcome everyone to correct my mistakes and/or add their knowledge.
The reason that I’ve spent the time to research this subject is that I believe that most speculators in this forum are looking at the wrong parameters when trying to calculate future staking returns. They are looking at volume and speculating on which percentage that OMG will take of that volume; I think that we instead should be looking at the number of transactions. The cost of a simple transaction of value from one part to another on a blockchain (Ethereum or OMG) is, as far as I know, not dependent on the size of the value. I believe that the OMG blockchain will have a dynamic fee structure where buying an apple or buying a car will cost the same amount in transaction fees (although payment companies on top of the OMG blockchain might take a fixed percentage for their services, but that won’t affect us OMG stakers).
If my assumption above is correct, then we need to figure out how many transactions that OMG might process. So, how many transactions are we talking here? Well, I’ve started now by looking at four different areas of value transactions:
Every day purchases
Every day purchases
These are transactions where people use cash or card to purchase some item (buying fruit or a computer). Now, the exact number is impossible to find but we can get some good approximations. According to the 2016 Nilson report there was 227 billion card transactions during 2015 worldwide.  But, as we all know, OmiseGO’s plan stretches also to the unbanked and the cash payments. According to Raconteur 85 % of the worlds transactions are still done in cash.  Simple math tells us then that
A*0.15 = 227 billion -> A = (227 billion)/0.15 = 1.51 trillion payment transactions every year.
[This is of course not 100 % accurate since in the parts of the world where there is the least amount of card transactions there is also probably a lot fewer transactions overall. However, I think that we at least are at the right order of magnitude.]
All the world’s stock exchanges could be rebuilt on top of the OMG blockchain in a more efficient way than before. So, how many transactions is that? This is a hard number to get ahold of and my estimate will probably end up being too low since many transactions never get registered outside of the trading houses. For example: a trading house can make 1 trade on the exchange where it buys 10,000.00 off Stock A, but then it sells it too 100 of their own customers. This last data is the hardest to get ahold of even if the trade data from the exchanges are almost impossible to find as well. According to Nasdaq there is an average of 10.5 million transactions per day on their exchange.  Now, The Money Project has published an infographic showing the worlds largest stock exchanges in relative volume to each other and the whole world market; it says that Nasdaq has a 10.79 % share of a global market of $69 trillion.  If we assume that there is a linear correlation between volume and number transactions for all the worlds stock exchanges, then we can assume that Nasdaq’s volume percentage of 10.78 is also it’s transactions percentage in relation to the worlds stock markets. This means that the global number of stock transactions is annually
B = (252*10.5 million)/0.1078 = $24.5 billion. [The number 252 in the equation is the average number of trading days per year.]
Pure money transfer transactions. One of the leading actors on that market is Western Union which, according to Forbes holds a 15 % market share with 231 million transactions per year.  This leads us to the approximation that the total market sees
C = (231*10 million)/0.15 = 1.54 billion transactions every year.
Now, the forex market is definitely the hardest one to find information about. I posted in /Forex and they were helpful but told me that exact figures would be impossible to find.  However, much in the same manner as with the stock markets I was able to reach an approximation which others will have to judge if it’s fair or not. According to the CEO of LMAX exchange they print 1.5 million trades per day  which I will use as 1 trade = 1 transaction (same with the stock market) which gives them
252*1.5 million = 378 million transactions per year.
The website Leaprate.com has reported that LMAX has an average monthly volume of $175 billion  which ends up being $2.1 trillion per year. Let’s say that a linear correlation between number of trades and volume exists over all exchanges on the global forex market, again as we did with the stock market. This means that
378 million / ”Number of forex transactions globally” = $2.1 trillion/”$Global forex annual volume”.
The number of transactions globally is therefore
D = 378 million/($2.1 trillion/”$Global forex annual volume”)
with the variable being the annual total volume on the global forex market. According to Businessinsider.com the daily global volume is on average $5.1 trillion  which means that the annual volume is 252*$5.1 trillion = $1290 trillion which gives us the number of transactions annually on the global Forex market to be
D = 231 billion.
Total number of transactions and what that means in regard to staking
The total number of transactions E = A + B + C + D = 1.51 trillion + 24.5 billion + 1.54 billion + 231 billion = 1.77 trillion transactions every year.
If anyone wants to do their own calculations and only include certain percentages of the different markets then of course it is easy to add these percentages before their respected market in the equation above. I however, will calculate staking returns based on the premise that 100 % of these markets will be built and thrive on top of the OMG blockchain.
The equation for the returns of every OMG staked is pretty easy:
$/omg/year = Number of transaction per year*transaction fee / Number of coins staked .
The question is of course: what will the transaction fee be? No one can say, but I will use the transaction fee for the Ethereum network as a benchmark. The transaction fees on the Ethereum network varies but a recent low average has been around $0.2 per transaction.  Number of staked coins has also been up for debate at various times; 60 % has been thrown around and I’ll use that.
Case 1: OMG blockchain charge as much as the Ethereum blockchain does right now
$/omg/year = 1.77 trillion*0.2 / 0.6*140 million = $4,214.29
Case 2: OMG blockchain charge 10 % of what Ethereum blockchain does right now
$/omg/year = 1.77 trillion*0.1*0.2 / 0.6*140 million = $421.43
Case 3: OMG blockchain charge 1 % of what Ethereum blockchain does right now
$/omg/year = 1.77 trillion*0.01*0.2 / 0.6*140 million = $42.14
Again, I would like to invite anyone here to help me and point out any faults in my calculations, approximations and/or assumptions. However, could you also do the new calculations and add your proposed staking returns? I am a full-time student so hopefully the edits can happen in the comments instead of by me. Thanks!
How-to & FAQ for holding Bitcoin and Ethereum in an RRSP/TFSA
A few months ago I came across a way to hold crypto in my RRSP/TFSA and have been answering questions about how to do that in comments, DM's, and Skype consults. I figured it would be helpful to put together one big comprehensive FAQ. Cryptocurrency is treated as a commodity by the CRA and you must pay capital gains taxes on any profits if held outside a TFSA. If bitcoin goes to $1m as some are predicting, the Canadian government is going to be taxing a huge windfall in capital gains taxes. BACKGROUND Bitcoin & other crypto cannot be held directly in a RRSP/TFSA, and there are no eligible ETF's in North America yet. However, the ETN COINXBT which trades on the Stockholm Stock Exchange in Sweden (Nasdaq Stockholm) is eligible. ABOUT COINXBT COINXBT holds bitcoin directly and its price per share is based on a 0.005 multiple of the current bitcoin price. For example, if the current price of bitcoin is $10000USD, a share of COINXBT will be worth $50USD (ie: $493 Swedish Kroner) Company's website and full prospectus at: https://xbtprovider.com/ Price quote / chart: https://www.bloomberg.com/quote/COINXBT:SS HOW-TO TRADE Only some Canadian brokerages allow you to trade on eligible international exchanges in your TFSA. Some do not. Typically placing trades on international exchanges online is not an option and must be made over the phone broker-assisted at a much higher cost than typical North American securities. CANADIAN BROKERS I've called pretty much every brokerage to inquire if international securities can be held in a TFSA and what the fee is to transact. You may want to call yourself to see if policies have changed, but here's a summary:
National Bank: $75 per trade + $0.06 per share (confirmed works)
TD: Fee dependent on amount traded. Up to $5K is $187, $80K would be $520 per trade (confirmed works)
CIBC: $250 minimum, based on trade amount. $50K would be about $350 to buy and $350 to sell (confirmed works)
Scotia iTrade: $250 CAD per trade CAD, unlimited shares & order size (should work)
BMO Investorline: Fee-based on total trade amount. $50K would be $325 to buy $225 to sell, $50-$60K would be $350 to buy $240 to sell (should work)
Not available, or not available in RRSP/TFSA:
Interactive Brokers, can trade it, but not in RRSP/TFSA
HSBC (has access to almost every exchange other than Stockholm)
FAQ's Are you sure it's legal? I'm quite sure it's illegal.
I used National Bank Direct Brokerage. The fee's came out to $75 per trade + $0.06 per share. For example, the commission for a trade I did for 885 shares of COINXBT was $75 + $53.10 for a total of $128.10. Canadian funds were used to make the purchase and there were no forex fees for converting to Swedish Kroner (SEK)
How do I make a trade once I'm ready?
Call your brokerage and say you want to place a trade on the Stockholm stock exchange. You may be forwarded to a person that specializes in that, and eventually to a broker that deals with placing order on international exchanges. Tell them the symbol to trade is COINXBT and the name of the ETN is "Bitcoin Tracker One".
How do I calculate the number of shares to trade to max out my TFSA?
The price of COINXBT is in SEK. In my case using NB I took my balance minus anticipated fees divided by the current price to see how many shares I could buy. For example: For a $10,000 TFSA, current COINXBT price = $554.77SEK (84.27CAD), would be 117 shares at a cost of $9859.59 + $82.02 commission for a total of $9941.61CAD
Market or Limit order?
The first time I placed an order for COINXBT I tried to place a limit order a little below the market price. Over the next week the price of bitcoin ran up a lot and didn't come down. I ended up buying a lot higher. Since then I've been placing limit orders slightly above the current price or just market orders so that they go through right away. I've had no issues doing it either way.
When can I trade? Is it only possible to make the trade while the Swedish market is open and the TSX are open at the same time? Or can you place the order at any time of day?
XBT Provider has said they will monitor forks for 3-months and then decide what action to take. In the case of Bitcoin Cash, they sold the forked coins and distributed it as a dividend to anyone that held ETN shares on the fork date.
What about other cryptocurrencies?
An ethereum ETN was recently launched: COINETH that also trades on the Stockholm exchange. https://www.bloomberg.com/quote/COINETH:SS Other than that, I am not aware of any other eligible crypto securities that can be held in a RRSP/TFSA
How is the price of COINXBT determined?
It's based on the average price of the top 3 exchanges
Why not just buy GBTC?
GBTC is traded on the OTC exchange in the US and is not RRSP/TFSA eligible
Why can't I place a trade online myself?
For now, there are no crypto ETF's on North American exchanges. They have been in the works for years in the US, but no approvals yet. Evolve funds recently said they plan to launch a Canadian Bitcoin ETF. Trading COINXBT is a bit of a hassle, but you're getting in ahead of everyone else that are not willing to put in the time/effort. Once the Canadian/US ETF launches, it will probably be worth it to sell COINXBT and switch to the North American one which should be easy to trade online just like other ETF's.
Feedback If you've managed to get crypto into your RRSP/TFSA in any other ways than listed above please do leave a comment and I'll update the post. Thanks!
Forex trading is the simultaneous buying of one currency and selling of another… Read more
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A market order is an order to open a buy or sell position at… Read more We complete our education centre with a breakdown of Gold Trading and details of the different Order Types. You can also review our glossary to find brief definitions of various trading and financial terms you may encounter. Once you have familiarised yourself with the information and concepts, you can open a Demo Trading Account to practice what you have learnt and build on your knowledge and understanding of how to trade successfully. Treat your demo account as you would your real account. Aprender a operar con Forex | Lernen Sie Forex zu handeln
What is Forex? Think the stock market is huge? Think again. Learn about the LARGEST financial market in the world and how to trade in it.
What Is Forex?Learn about this massively huge financial market where fiat currencies are traded.
What Is Traded In Forex?Currencies are the name of the game. Yes, you can buy and sell currencies against each other as a short-term trade, long-term investment, or something in-between.
Buying And Selling Currency PairsThe first thing that you need to know about forex trading is that currencies are traded in pairs; you can’t buy or sell a currency without another.
Know Your Forex History!If it wasn’t for the Bretton Woods System (and the great Al Gore), there would be no retail forex trading! Time to brush up on your history!
When Can You Trade Forex? Now that you know who participates in the forex market, it’s time to learn when you can trade!
Forex Trading SessionsJust because the forex market is open 24 hours a day doesn’t mean it’s always active! See how the forex market is broken up into four major trading sessions and which ones provides the most opportunities.
When Can You Trade Forex: Tokyo SessionGodzilla, Nintendo, and sushi! What’s not to like about Tokyo?!? The Tokyo session is sometimes referred to as the Asian session, which is also the session where we start fresh every day!
When Can You Trade Forex: London SessionNot only is London the home of Big Ben, David Beckham, and the Queen, but it’s also considered the forex capital of the world–raking in about 30% of all forex transactions every day!
When Can You Trade Forex: New York SessionNew York baby! The concrete jungle where forex dreams are made of! Just like Asia and Europe, the U.S. is considered one of the top financial centers in the world, so it definitely sees its fair share of action–and then some!
Types of Forex Orders“Would you like pips with that?” Okay, not that type of order, but buying and selling currencies can be just as simple with a little practice.
Demo Trade Your Way to SuccessCurrency market behavior is constantly evolving. Trade on demo first to get a lot of the rookie mistakes out of the way before risking live capital. There are no take-backs in the real market.
Forex Trading is NOT a Get-Rich-Quick SchemeWhile possible if you’re a trading genius with ice in your veins and you’re luckier than a lottery winner, building wealth through trading takes time and practice to build the skills and experience needed to be successful.
The intelligent investors guide to cryptocurrency: Part 3b - Pricing and liquidity
*Introductions: I'm joskye. A cryptocurrency investor and SDC holder. * ... Hi again. This is the third part in our ongoing series on how to trade better and determine intelligent investments in cryptocurrency for the future.
In part 1 I talked about the importance of selling enough to make back your principle investment i.e. if you buy something at $300 and it rises to $600 in value, sell $300 to eliminate all future risk of personal loss e.g. if that asset falls to $150 in value after (which can happen easily since suchvolatility is very common in cryptocurrency). In cryptocurrency trading/investments a 100% return of investment should always prompt you to consider selling 1/2 your stack.
In part 2 I talked about the psychology behind fear of missing out; i.e. the dangers of buying during a sudden rise in an asset's price and how to make the most of such rallies whilst minimising the risks involved in joining them.
In part 3a I discussed The importance of a value proposition and the absolute need for any cryptocurrency you invest in to already generate or have the potential to generate revenue in a manner completely independent of it's speculative value as dictated by daily market prices.
Part 3b continues where I left off with a discussion about price metrics specifically, what determines the price and the importance of liquidity: ... The day traders: As I mentioned in my previous article, as of writing almost every cryptocurrency is determined purely by speculative value. Thus the absolute price of a given cryptocurrency is determined solely by the day traders and specifically the last price it was agreed that currency would be sold at with confirmation of that price by a buyer who bought it. People say lots of things determine the price; marketcap, liquidity, value proposition, revenues generated by the coin, the number of said coin in circulation but ultimately it comes down to the number of buyers and number of sellers competing for that coin. Perhaps the other thing is the size of said market relative to the money held by the players in it. For instance in cryptocurrency Bitcoin is still the biggest player in the game. It carries a per unit price of $900 per coin. There are currently 16,090,137 (16 million) coins in circulation giving it a total marketcap value of [$900 x 16090137 =] $14481123300 or 14.48 billion USD.
This is 85% of the current cryptocurrency marketcap. (The total marketcap of all cryptocurrencies as of writing is 17.17 billion USD.)
Compare and contrast Shadowcash (SDC) which has a unit price of $1.27 with 6,616814 coins in circulation giving it a total marketcap value of [$1.27 x 6616814=] $8392766 or 8.39 million USD.
Thus Shadowcash in comparison to Bitcoin is a tiny cap of the cryptocurrency sphere. Shadowcash has a total value that is only 0.06% of Bitcoin when comparing marketcap's.
Shadowcash looks even more meagre compared to the total cryptocurrency marketcap with only 0.048% of the total cryptocurrency sphere. To any Shadowcash holders despairing at this point, relax. There are over 707 cryptocurrencies trading as of writing and SDC holds the 27th ranking in terms of market cap. In such a competitive field, filled with scams that's pretty good. Moreso when you consider that SDC is a legitimate technology and is currently probably very undervalued. ... Lets look at the rich list for bitcoin:
The top holder has 124,956 Bitcoin valued at $1,12460400 or 1.24 billion USD.
The top SDC holder has 1027261 SDC valued at $1,304621 or 1.4 million USD.
Thus the wealth of the top SDC holder is 1.16% that of the wealth of the top Bitcoin holder.
Why did I just talk about this?
Well they say that a big fish can easily occupy, make a splash in and empty a small pond just by diving in.
In cryptocurrency I see this happening on the markets all the time. Indeed market manipulation effects every single cryptocurrency eventually. ... Market manipulation! Large holders of valuable, high marketcap coins will often make multiple small volume purchases of less valuable, low marketcap coins. Often this will follow announcements regarding developments in that low marketcap coin.
An example of low volume ordering is buying 1 SDC at $1.20, 0.5 SDC at $1.2001, 5 SDC at $1.2010, 3 SDC at $1.21, 10 SDC at $1.22 and 0.11 SDC at $1.24, but then leaving someone else to fill the order for 100 SDC priced at $1.242.
Thus by spending $23.77, in low volume purchases the buyer can raise the market cap of SDC from ($1.20 * 6,616814 coins) $7.94 million to (1.24 * 6,616814) $8.20 million! (4.2% increase).
Low volume buying in a market with low daily trading volume can gradually drive up the price attracting an influx of buyers into that coin; often they will make larger volume purchases of it which helps drive up the price much further. This will trigger a further chain of buyers experiencing FOMO (fear of missing out, detailed in Part 2) who will drive up the price even further. The price will pump. Often will smaller cap cryptocurrencies this may result in a sudden 20, 40, 60 or even +100% increase in value often over a very short time space (1-2 days, 1-2 weeks maximum).
Often the original purchaser who triggered these events will have accumulated a lot of said cryptocurrency cheaply prior to or during the early stages of the pump and will wind up selling the majority of his/her's purchases when the price reaches a peak; usually when the daily/hourly trading volume on that coin starts to decline but sufficient buyers are still available.
This results in a sudden or often more gradual dump in the coins value, usually by falling by 75% or more of the rise.
The only way to discern if the sudden rise in coin value is due to pre-rigged market manipulation is to look at:
the value proposition of that coin (discussed extensively in part 3a of this guide)
the order book
the depth chart
the pattern of change on daily trading volume (and liquidity)
You are looking for organic, gradual growth based on a solid value proposition. Sudden large spikes in value should make you pause and wonder if it's worth waiting for a gradual correction (organic drop) in price before entering your buy order. Do not fall for a pump and dump. Stick to the lessons covered in previous parts of this guide (especially part 3a and 2) and you will be much less likely to lose money in the long run trading and investing in cryptocurrencies. ... The pattern of change on daily trading volume, the order book and liquidity: Lets look at SDC and Bitcoin again. This time we are going to compare the daily trading volume (last 24 hours) in USD.
In the last 24 hours (dated 8th Jan 2016), SDC traded a total volume of $26,033. This is 0.01% of all USD daily trading volume on exchanges and only 0.39% of the total marketcap of SDC.
In contrast Bitcoin traded $163,306,776 ($0.16 Billion) over the same 24 hour period. This is 76.15% of USD daily trading volume on exchanges and only 1.12% of it's total marketcap.
I'd just like to use this opportunity to point out and reinforce the idea that day traders not holders dictate the daily price of an asset. I'd also like to point out daily global trading volume on Forex is $4800 billion which makes Bitcoin a very small fish in the broader arena of global finance and trade i.e. Bitcoin is still very vulnerable to all the price manipulation tactics and liquidity issues I am going to be describing in this article by bigger players with richer pockets.
The numbers means that just because the marketcap of Bitcoin is $14 billion, that does not mean that there is truly $14 billion worth of fiat currencies (USD, Yuan, Euro etc) in Bitcoin; the total fiat volume is merely an estimate based on current price and number of Bitcoin in circulation.
The daily trading volume also gives you an idea of how much fiat currency you can invest into a given cryptocurrency before you suddenly shift the price.
For example based on the 24 hour daily trading volume for SDC I know that if I blindly spent $15,000 (57% of the daily trading volume) buying SDC without any regard to the price, I can be confident that I will likely cause the price of SDC to go up significantly.
In contrast spending $15,000 to buy Bitcoin (0.0092% of the daily trading volume) without regards to it's price, I can be confident that it will not likely cause a significant rise in the daily spot price of Bitcoin.
A sudden rise in coin price heavily out of proportion to the rise in daily trading volume should be the first sign to alert you to a pump & dump scam.
It implies a low volume trading at low prices to trick the unseasoned trader to perpetuate higher volume, high price buys.
If daily trading volume cannot organically increase to sustain the price, it will eventually fall when the original pumper (or group of pumpers) sell to take their profits.
Daily trading volume should show a steady increase over time with sustained buy support at new price levels; this is a good marker of organic, sustainable growth.
This does not always have to be the case! Sufficiently large price movements (several 1000%) can significantly raise the next absolute low in price for the mid-term (months) even if that is several 100% lower than the peak!
Conversely declining trading volumes indicate loss of interest in the coin and a price that is potentially more prone to and at risk of price manipulation with smaller amounts of fiat/bitcoin (than if higher daily trading volumes existed).
Finally the fact that daily fiat trading volume for Bitcoin and Shadowcash is such a small percentage of it's total marketcap reinforces the idea that price is set by day traders not by holders!
... For more detail you can now look at the depth chart: The depth chart is very useful to know how much fiat currency is required to cause the spot price of a given cryptocurrency to rise or fall by a given amount.
The depth chart groups different bids (buy orders) and asks (sell orders) by price and volume e.g. 17.739 bitcoin worth of SDC are currently on sale at poloniex for 0.00117500 bitcoin each ($1.07 per coin) and 0.149 Bitcoin are on sale at the current spot price of 0.00135750 Bitcoin ($1.24)
So as of writing, I can see (from the charts) to raise the price of SDC from 0.00135750 Bitcoin ($1.24) to 0.00181381 Bitcoin ($1.66) I would need to spend 26 Bitcoin ($23783).
NB the price of most cryptocurrencies is expressed in Bitcoin because it has the largest market cap and daily trading volume of all cryptocurrencies by a very large margin and because with a few exceptions (Ethereum, Monero) most cryptocurrencies do not have routes to directly purchase via fiat currency without first purchasing Bitcoin.
The depth chart shows me how many coins I can buy without significantly increasing the price and how many coins I can sell within a given price range.It gives me an idea of the liquidity and volatility of the market i.e. if I buy SDC right now and need to sell it later today or tomorrow for fiat, what is the realistic probability I can get my entire amount in fiat returned to me in the amount originally spent.
Liquidity is super important. People often complain about a market lacking liquidity but that is often because they are trading in fiat volumes which far exceed the daily trading fiat volumes of the cryptocurrency they are referring to. If you are investing or trading in a cryptocurrency, always factor in the your personal liquidity and need for liquidity relative to that of the cryptocurrency you are investing in. In other words don't expect to make a profit next day selling 'cryptocurrency x' if the size your single buy order composes >90% of the buy orders on the market for 'cryptocurrency x' that day (indeed in such a scenario be very prepared to sell at a loss next day if you absolutely have to)!
The depth chart also gives me an idea of where significant supports exists (price zones with large buy orders relative to the depth chart) to determine the true base price (in conjunction with daily trading volume) and where significant resistances exist (price zones with large sell orders relative to the rest of the depth chart) to determine what the majority of sellers think the coin is truly worth. Be wary though as buy walls (large supports) and sell walls (large resistances) can be moved at any time.
There are certain patterns on a depth chart that make me believe a significant, sustained price rise is imminent: One example occurs when there is a very large volume of buy orders (>25% of total buy volume within 5% of current price) very close to the current (spot) price, and a very large number of sell orders close to but significantly above the spot price (approx 25% total sell volume within 10% of current price) and especially if the total buy order volume is a significantly higher percentage than it has previously been. This simply indicates high demand at current price which may soon outstrip supply. Again I stress that these patterns can be manipulated easily by wealthy traders.
It is up to you to study the depth charts and discern the patterns. You will learn more about day trading this way.
... The order book is another way of looking at the depth chart and allows you to see the specific transactions occurring that compose daily trading volume by the second! I find it useful because it allows me to identify:
If there is a string of low volume orders that can be filled to pump the price (or conversely a string of low volume sell orders to dump it). This can play on the psychology of the entire market as many people aren't simply aware of how the manipulations occur; most people simply look at the price!
Where resistances to price change occur and how much money it will take to break them (i.e. if I am day trading to make a profit via pumping, is it worth me spending X to clear a sell wall to encourage others to buy and push up the price further or do I need to spend so much of my capital that should I fail to stimulate buy orders, I become vulnerable to a dump in coin price with effective subsequent loss of fiat money).
The presence of automated trading bots rapidly cycling a buy or sell order of fixed volume between a series of prices that dynamically adjust with the overall trend in price movements. Bots can be your best friend (to pumping or dumping price) if you know how to manipulate them!
... The price charts: Discussions about price charts could be endless. I'm not going to go into too much detail, mostly because I'm an investor who believes the value proposition, good consistent development, decent marketing and communications will ultimately trump spot prices and adverse (or positive) short term price trends in the future.
I'm also going to skim this because I'm not as versed in this subject as I'd like to be.
I personally use the candle bar charts on Poloniex to look at 15 minute and daily candles on the hourly, daily, weekly and monthly charts.
I combine this with charts on Bittrex which can calculate the RSI (to estimate if a coin is overbought or oversold) and Bollinger Bands (again to help estimate if a coin is overbought or oversold).
I usually look at the overall direction of trading over a period of several days, compare it to the direction and trends over the last month. I then try to interpret it in the context of the daily trading volume and depth charts.
I often get my predictions on short term price movement wrong if I only look at candle charts without factoring in depth charts, order book and daily trading volume patterns! I have a lot more learning to do on technical analysis.
The charts do often reveal mid/long term supports and resistances in price!
Investopedia is a good place to start learning about different mathematical techniques to analyse charts (including any terms used in these articles).
I'm a big fan of u/kustonoy who inhabits the Ethtrader sub. I personally feel his analysis of the short term markets are generally pretty good. You should never be too lazy to not do your own regular market analysisespecially if trading short term, but if you want a good reference point, I suggest following him.
... The news cycle:
I've mentioned this lower down the list because for intra-day and day traders and even to some extent investors, the news cycle matters very little unless it directly affects the value proposition in some way.
If a news event does result in real maturation of the proposed value proposition (such that the technology has confirmed a new sustained user base or revenue stream) then it might justify a sustained rise in price regardless of the volatility achieved reaching and following the peak.
Some assets may have nothing but an endless stream of good news which meets the above criteria yet it's valuation fails to increase. This is likely a sign that a larger player is deliberately manipulating the market to accumulate more of that asset to sell very high later (I believe Ethereum has fallen victim to this recently).
... Other interesting points: The 'coin x' scenario and the ridiculousness of marketcap: 'Coin X' is an imaginary hypothetical coin. There are only 10 in circulation. It has no value proposition beyond it's speculative value i.e. it will never generate a revenue independent of it's speculative value.
If 'coin x' had only 10 in circulation, was indivisible and each coin had a value of $3 billion, the market cap of 'coin x' would surpass Bitcoin!
If all 10 coins were not on sale then 'coin x' would have a value of zero.
If 9 people had bought 'coin x' at $1 and the 10th person bought it at $3 billion, it's marketcap would still be $30 billion. This does not mean there is $30 billion of fiat stored in coin X.
If an 11th buyer came along and bought 'coin x' at $1.20 the price of coin X would fall to $1.20 and the marketcap of 'coin x' would be $12.0.
This still does not mean there is $12 of fiat stored in coin x.
This does not mean everyone can sell 'coin x' at $1.20.
A new buyer blind to the purely speculative nature of 'coin x' looking at the trend charts could try to argue it is now extremely undervalued and a great buy or possibly was a grand scam and untouchable.
Either way the next price at which 'coin x' is bought/sold is purely arbitrary and determined by the patience of the seller and the impatience of the buyer.
[Edit]: I could also issue 10 more of 'coin x' and if it's unit price remained $1.20 the market cap would instantly double from $12 to $24!
I'd like to point out the similarities between ZCash and 'coin x' (especially during it's launch). ... Lessons:
Marketcap is derived from the price, not the other way around. Until a cryptocurrency generates significant revenue independent of it's speculative valuation this will remain the case.
Price is determined by the day traders, not by the holders.
The spot price of any given cryptocurrency is determined by the patience of the seller and the impatience of the buyer.
Price of most cryptocurrencies is derived from bitcoin unless they have a direct fiat gateway. Unless a significant amount of trading volume occurs via the fiat gateway, the price of that cryptocurrency is still heavily dependent on the price of bitcoin.
Bitcoin is (for now) is the gold standard of cryptocurrencies. Because it has the largest marketcap (by a very massive margin).
Market manipulation means that large holders in more valuable currencies (large marketcaps) can tamper with and set the value of much smaller currencies (i.e. smaller marketcaps).
Bitcoin's price itself can be manipulated by investment banks, governments or firms who trade in multi billions of USD daily. This is because the daily trading volume is almost 5 trillion trillion USD (which is several thousand times larger
There is nothing wrong with investing or trading in cryptocurrencies with low daily trading volumes and marketcaps, just be concious not to put more money into them than their long term buy support can handle and only invest what you can afford to lose.
The concept of liquidity in a market is important relative to the amount of fiat you are planning to invest or trade in it.
Whether day trading or investing, pick cryptocurrencies with good fundamentals i.e. excellent development teams, good marketing and strong value propositions that will provide the cryptocurrency in question use and value independent of speculative valuations.You are less likely to get manipulated or scammed in the long run that way especially if you are a holder.
Be very weary of trading or investing small amounts of money in larger markets that allow leveraged trading. Those markets will behave irrationally and not follow the fundamentals in the short term.
It is up to you to study the depth charts, order books, candle bar charts, daily trading volumes and news cycle to discern the patterns. The price is a composite of this and the psychology of people who don't understand this. You will learn more about day trading this way and more importantly learn to trade/invest independent of the price.
... Finally why am I writing this? I mean I just spoke openly about how SDC and indeed any cryptocurrencies (or purely speculative assets) price can be manipulated in the short term. Well SDC has an incredible value proposition that could generate and attract large amounts of non-speculative fiat currency into it's ecosystem. I already covered that in part 3a (https://www.reddit.com/Shadowcash/comments/5lhh6m/the_intelligent_investors_guide_to_cryptocurrency/). For this reason I think the short term speculative pump and dumps in SDC will eventually be replaced by a more sustained, larger buy support. I suspect this will occur when the marketplace is released and certain other announcements are released. For this reason I declare my opinion that Shadowcash is the best cryptocurrency investment of 2016 and I believe it will be again by March 2017. ... References:
Coin market capitalisations and data including rich lists derived from:
... Disclaimer: All prices and values given are as of time of writing (Midday 08-Jan-2016). I am not responsible for your financial decisions, nor am I advising you take a particular financial position. Rather I am sharing my experiences and hoping you form your own opinions and insights from them. Full disclosure: I have long positions in Ethereum (ETH), Shadowcash (SDC), ICONOMI (ICN), Augur (REP) and Digix (DGD).
A financial expert's very negative outlook on Bitcoin.
Hello there people of reddit! I have translated this blog post which I would like to share with you all. The original blog post appeared in a rather famous hungarian financial blog and it posed some interesting questions. It would be really good if the intelligent people of reddit would start a debate on these topics. There is a big learning opportunity here. I personally disagree with many of the points made in the post while I agree with some of them. I think that it is important to listen to the negative opinions because we can grow from them and we can either strengthen our opinions by disproving the counter-arguments of others or we can formulate and fine-tune our opinions by accepting partial truths from the opposing opinion. (Maybe we can even change our opinions alltogether in some cases) I post this in the hopes of having an intelligent conversation about the topic and it would be a bit sad if this would get downvoted because then the conversation wouldn’t be able to unfold. I say let's examine the other side, let's look at their arguments, let's try to understand them and let’s try to learn from them so that we may become smarter, better, and more well informed. Also this can be a very good test if you think about investing in Bitcoin. If this discourages you then your fundamental knowledge of cryptocurrencies or Bitcoin may not be satisfactory yet or you may be thinking about investing with money what you cannot afford to loose So without further to do here is the actual blog post translated from kiszamolo.hu. RTT314 I am writing about Bitcoin. I didn’t want to at all but since everybody is talking about it I had to. Translator's note: There was a previous blog post about Bitcoin which got a massive amount of feedback in the hungarian community. The general feedback I received about my previous post on Bitcoin wonderfully resembled the the feedback I got when I wrote about Kairos, Emgoldex, Quaestor and Sitetalk. (these were all scams in their times) In case you don’t have time to read the comments on my previous post I’ll summarize them for you. Its quite simple because people basically write the same thing all over again (Bitcoin or Emgoldex it doesn’t matter.) The comment categories are as follows:
You have no idea about the topic.
You’re an arrogant jealous prick, who wants to screw up people’s chance of getting rich.
You have my respect all the time, but with this opportunity you missed the point big time.
This is different, this is a new technology, this will work for sure. This is a huge innovation, this is something people never heard before, this technology is on the verge of exploding into the mass-media. (Oh how many times have I heard this when it came to similar topics)
It’s a good idea to look at those people who wrote these comments a few years back. The people of Kairos who came here (to his blog) taunting and showing off their earnings with Kairos. And then all of a sudden it became apparent that it was just another scam and they lost all the money in a heartbeat. What did I cover in the previous blog post on Bitcoin? I wrote, that you don’t know anything about Bitcoin, that you don’t know who is behind it or whether there is someone behind it or not. What gives actually Bitcoin’s value? How do we know that its better than the other cryptocurrencies? How do we know if one BTC is expensive for 1000 dollars or cheap? For a long time people bought it for 1 dollar, then for a long time for 100, then 1000 and now 16 thousand. Which price is the realistic one? Or none of it is realistic and its still cheap? How can I find it out? I have basically nothing at all to which I could compare its price. Just like in the dotcom bubble when it came to evaluating the .com companies. The normal method of evaluation didn’t work when it came to these companies because everybody wanted to think, that these companies can conquer the whole world. And because of that basically no price was too expensive for a share. And then it became apparent, that in fact even a single dollar was too much for 95% of them. Just because something is revolutionary and new it doesn’t mean that it has value too. Especially when anybody can copy it freely. This happened with the .com companies too. Everybody learned fast, that just because they are innovative and revolutionary they can’t make a profit and most of them didn’t even worth a penny. And the .com companies were 100 times easier to evaluate than Bitcoin. At least they had expenses, profits, employees, products and patents. You could at least calculate with something. Why is Bitcoin considered money? Currently it has none of the properties of money - you can’t pay with it everywhere, it’s exchange rate is not stable at all and because of that it is not suitable for accumulating wealth in it (just in the past 12 hours the price of one BTC was between $16.123 and $17.023 and today is one of the calmer days.) Anybody can invent a newer Bitcoin and people do so too. There’s almost ten times more cryptocurrencies today than normal currencies in the world and almost every day a new one gets listed. This is because anybody can make a cryptocurrency. You don’t have to have a whole country behind it with its total assets, government, and financial traffic. If you have good marketing you will be a millionaire from a new cryptocurrency. Currently there are 1324 cryptocurrencies and there is almost no day when no new ones are added. On the contrary there is only 180 types of traditional currencies in the world. I also mentioned, that governments can limit the use of cryptocurrencies any time by illegalizing the exchange of cryptocurrencies to real money. And if that happens all cryptocurrencies will be worthless in a blink of an eye. I don’t want to get into new ideological debates. I just want to place Bitcoin amongst all the hype into the world’s financial traffic. Where does Bitcoin stand compared to the current world’s financial traffic and does it look like a bubble? Will it really change the world’s financial system and will it really change the old technologies? Bitcoin’s total market cap was 15,49 billion dollars on 2017 January the 1st and what’s at least as important is that the daily traffic volume was 92 million dollars. https://imgur.com/a/kI0Ru Bitcoin’s current market cap (17 thousand dollars) is 289 billion dollars and the daily traffic volume is 12.135 million dollars so the daily traffic grew 131-fold since January the 1st. One of the world’s biggest bank - the Bank of America’s - market cap is also 300 billion dollars and that is accompanied by 2,228 billion dollars worth of assets which gives one of the basis of the actual evaluation. Bitcoin has zero assets. Bank of America every four months (!!!) profits 22,3 billion dollars and one fifth of this is net profit. The profit of Bitcoin is zero and the net profit of Bitcoin is also zero. Europe’s 16th biggest economy, Finland has a yearly GDP of 236 billion dollars. If Bitcoin’s market cap doubles again, it’s market cap will be equal to Hungary’s, Ukraine’s, Slovakia’s, Luxemburg’s, Croatia’s, Bulgaria’s and Latvia’s GDP all together. Or at least on paper. (Of course the actual BTC's market cap and the GDP is very different, but i guess you can still feel the nonsense in this) People make 337 thousand daily transactions with Bitcoin. Just Visa alone makes 468 million transactions per day and this is just a tiny slice from the total world’s transactions. The SWIFT system which is used by banks to make international transfers even 12 years ago made 5 thousand billion dollars worth of traffic. Daily.(!) The similiar Fedwire payment system which works in the USA had a daily traffic of 2,1 thousand billion dollars, the CHIPS had 1,4 thousand billion dollars. And these numbers are 12 years old so you can easily double them to get to the present numbers. And this data is only of three clearing houses out of a dozen! All the national clearing houses in total can have multiple hundred times more traffic than these ones. Even if we would like to use Bitcoin for just one tenth of the traffic of Visa we would soon have to store a few gigabytes then terabytes of data for each Bitcoin. The whole electricity generation and bandwidth of the world wouldn’t be enough if we would want to manage and transmit this much data constantly. (Even now the Bitcoin network uses more power than Bulgaria. The investors who mine Bitcoin spend money mostly on video cards and electricity. The biggest benefitors of Bitcoin are the chinese electricity providers and the video card companies. Even a whole bank system doesn’t use this much electricity and they execute multiple hundred thousand times more transactions than the Bitcoin’s network.) The technology is unsuitable for microtransactions. There are cryptocurrencies which are suitable for this but what will happen with you investment in Bitcoin when everybody starts to use one of these currencies? The future of the blockchain technology is completely different from the future price of Bitcoin which currently is just one out of 1324 cryptocurrencies and for which you paid a bunch of money. Somehow the people who kick back and leave their future on the price of Bitcoin don’t want to understand this. Just so you understand: I don’t argue whether or not blockchain technology (which is used by Bitcoin too) will be used in the future financial system. I argue whether or not one Bitcoin values 17 thousand dollars or even one dollar as a matter of fact. Do you think there will be a single bank which will choose exactly Bitcoin when it wants to switch to this new technology when Bitcoin is a completely unsuitable candidate? Or do you think that the bank will choose another cryptocurrency? Won’t the bank simply make its own one? The total value of all the dollar bills in circulation is 1,59 trillion dollars or 1590 billion dollars. If we look at the M3 (unbounded money in bank accounts, bills etc.) instead of only the bills we get 11 trillion dollars. But even this is only a tiny bit compared to the total assets in the american economy which is 220 trillion dollars. The daily size of the forex market is (!) 5.100.000.000.000 dollars. So think again when you see numbers which suggest that Bitcoin is the future. I wrote these numbers just so you can get a sense of the big Bitcoin which is about to knock down the world’s banking system. Just so you can understand the big Bitcoin’s place in the financial food chain. I’d also like to talk about a common misconception. Many people think that the value of Bitcoin comes from the fact that it’s very expensive to maintain. The mining is expensive. This is called an expense and it has no relation to value whatsoever. Things don’t represent value because they are costly to maintain. This is exactly the opposite of value. The more expensive is something to maintain the less valuable it is. Companies which have small costs value more than companies which have big costs with the same profits. There’s an old trick in the stocks market called pooling. A few scammers organize into a pool, they choose a smaller stock and they start to trade amongst each other with higher and higher prices. They just have to be careful not to catch attention. They have to increase the price gradually and slowly and the pool has to be big enough in order to stay undetected. When the whole world goes crazy because of the huge gains on the pooled stock and when everybody wants to be a part of the miracle the pool quietly sell the whole stack of stocks and disappear. The “investors” which are driven by greed don’t even care about the fact that the evaluation of the stock flied far above the actual value of the stock. How much simpler is this whole move when the given thing doesn’t even have a quantifiable value to which you can compare it to? Bitcoin is exactly like this. I wonder how are Bitcoins divided amongst the wallets? Could you drive up its value by getting into pools? You can’t drive up its value because it doesn’t even have any inherent value. The value of Bitcoin only comes from the people who are willing to pay for it. Bitcoin only has a price because people want to look at it as money even if it cannot function as money. The american dollar will have value until the United States exists and its government collects taxes in dollars from the world’s biggest economy and it pays its payouts in dollars. And if someone doesn’t want to pay the requested taxes in dollars the government has the power to imprison the person. The expression of total financial ignorance is when the believers of Bitcoin state that the real currencies are also based on nothing. The real currencies are just paper too without any value. Every real currency is backed by real value: the given country’s economy, assets, government, tax system give real value to the real currency. No cryptocurrency can present anything like this ever because cryptocurrencies are made out of thin air. Real currencies can function exactly because of this: because they have value too not just a price. This is why they can be a store of value, this is why they can be accepted in trade. Because tomorrow they will be worth just as much as today. They’re not just empty ping pong balls which are moved based on the needs and wants of the buyer. Potentially 10-20% per day. (Just for the sake of the smartpants: of course after world wars a real currency can lose value too just like how the syrian fiat lost value too when the value was essentially bombed out of it. The country’s economy collapsed and half of the taxpayers died or fled out of the country. But even this shows exactly the fact, that the price of the currency changes if the inherent value changes. And also the the price of the safety fiats (swiss franc) can be pumped up if investors are panicking. But we only know that their price is high compared to what their value is because it has a value.) Just because I invent the Reddit coin and create a lot but finite real physical coins it won’t be a currency which has value. Not even if the coins are unfalsifiable. Not even if there will be people who are willing to pay real money for my coins. Not even if other people realize that they can make coins just like me any time (that’s why there are already 1324 types of cryptocurrencies on the market) It won’t be real money even if following the current trend I create this Reddit coin as a cryptocurrency. Money doesn’t become money because I say its money. Neither does it become money because other people believe its money. But let's take a look at the bitcoin wallets amongst the investors: https://imgur.com/a/WN163 So basically 97,2% of the wallets doesn’t even own a single bitcoin! And 55,5% of the wallets doesn’t even contain 0,001 bitcoin! Of course a wallet is not necessarily a person but its apparent that there are many small fish in the sea of Bitcoin. It's good to know this when you read all the comments from the people who try to defend Bitcoin no matter what. Most of them don’t even own 700 bucks worth of bitcoin but they will become rich for life from this investment. 0,01% of the investors - 1.677 people own nearly 40% of the total bitcoins available. (Or it may be that these 1.677 wallets are owned by one person or twenty. We can’t even know that) but even 85% of the total bitcoins is in less than 1% of the wallets. In stocks lingo this is called a low free float. These people are the ones who manipulate the prices however they want it to. But of course they don’t want it to because why would they want such a thing? The prices are rising just because Bitcoin is the future. If Bitcoin wouldn’t be the Holy Bitcoin it would be simply called a Ponzi scheme. How does a Ponzi scheme look exactly? They build up a system which is new, which is alluring and about which people can believe that it’s the future. From this you’ll become rich. If you pay enough money now then you’ll be the part of the money rain too. Until more people are buying in than out the Ponzi scheme works great. Nobody realizes that there’s nothing behind it. Just the money of the depositors gives it value. Bitcoin is genial because it never even stated that there is some sort of value behind it so you can’t even expect it in the first place. Until more people want to put money in than out the price of Bitcoin will rise. I’ll say this again Bitcoin is alive because people want to treat it as money. “This is the money of the future, you are lagging behind if you don’t understand this. Why do you try to find the inherent value of it and the evaluation of it? You are an old prick who has no clue. This is a new world. Deal with it. You have to just believe this and don’t ask any questions.” Do you know how many times have I heard this from the faithful “investors” of the kairos, sidetalk, emgoldex ponzi schemes? A lot of people wait a lot from the december 18th stock appearance of Bitcoin but it can bring more bad than good. If the big speculators start to go hard on it they can double the price or drag it down to 0 within days. It's rather easy for them because there is no value behind it. Just a price tag. If the British Pound was attacked what do you think what will they do with Bitcoin? Here there is no national bank which will change the interest rates or pull other tricks from its sleeves to defend its own currency from falling or from a rising. Also here the investors won’t be able to say that a bitcoin is definitely worth more than this or not because the whole english economy is not behind it so they don’t have a guide for its inherent value. If Bitcoin was volatile so far you can prepare yourself for even bigger storms. You think whatever you want and you pay money for whatever you want. You know what? Even I’m telling you that knowing the madness, dumbness, and greed of people it is not unimaginable that Bitcoin will rise to 150 thousand dollars within the next year. But not because its value is that much but because there are too many greedy people who feel like they were left out of a great opportunity but it's not too late to jump in. But also don’t be amazed if its price will be 1 dollar again.
The era of artificial intelligence: how robots manage capital
Interview with Alexander Tatarsky, creator of the quantum fund How well do you know artificial intelligence? Perhaps you have never heard of it, or maybe it’s quite the opposite and robots are already managing your capital. We were able to interview Alexander Tatarsky — an experienced trader, co-founder and financial director of the Mercury Foundation — a fund that manages capital through A.I.! Alexander introduced us to the concept of his organization and explained the unique idea behind the project. https://preview.redd.it/bulvn62tuw021.jpg?width=700&format=pjpg&auto=webp&s=7c6357c83fe7c7afd904a8e9718447801fbdc8a1 Alexander, why did you start trading? How did you start and why did you decide to choose this particular field? Many people know that the Chinese word “crisis” consists of two hieroglyphs. One means “danger”, and the other one — “opportunity.” I considered a global financial crisis of 2008 an opportunity. That’s when I began my professional career in the financial markets. Before those events, I was always very interested in economics (thanks to my economic education!) and financial markets, but I focused on 2 aspects: first is financial markets as an instrument of global management of peoples and their well-being, second — financial markets as an example of the fundamental laws of nature. I always wanted to get closer to understanding the essence of these processes. However, until 2008, I was just a curious observer. I read books, watched major events, learned to compare facts. I was running a business that had nothing to do with the markets. The events of 2008 encouraged me to make my first profitable deals. And then I realized that this field is not only about self-development and curiosity — it could also become a source of permanent income. With the right approach, this income can be much higher than in other sectors of the economy. So the choice was made. What were the reasons for creating an Investment Foundation managed by artificial intelligence? Anyone who is professionally engaged in money management considers automation at some point. Computers are much more efficient than human when it comes to assets management. Robots are taking over, so it was a logical step for us. From the very beginning, we realized the inferiority of the ready-made solutions on the market and did not even consider using other people’s services. We could use the A.I, and we did. It was actually not even a question, it’s like asking an artist — why are you painting? Because we are the best at managing money. What is the market share (in particular, on cryptocurrency market) of the investment funds (including funds managed by artificial intelligence) and how do you handle the demand? If we talk about traditional financial markets, then, according to the latest data, the share of investment funds in the total volume of transactions amounts to 70%. At the same time, quantum funds account for at least 27% of all transactions on US exchanges. As for the cryptocurrency market, they are so riddled with fraud and unrealized projects that we have long since ceased to care about the competitors. There are many ordinary funds, but 80% of them close in a year and 95% of them — in three. We do not consider them competitors, as we are focused on long-term work. All their clients will eventually come to us. In long-term, the manual traders do not stand a chance against the robot. Are there any companies similar to yours in the world? Yes, sure. In our industry, only a few succeeded in achieving the degree of automation that we have. The most successful of our colleagues use qualitatively different algorithms that still require regular manual testing and customization. In most cases, those “algorithm factories” constantly have to adapt to the new market conditions. Our algorithms require human participation only at the development stage. Simply put, in most cases, operators with remote controls always follow their robots, but our robot can walk on its own. The market offers a huge number of different robots that promise to increase your capital in Forex, binary options, cryptocurrency. How are you different from them? Is it possible to earn money with such robots? Yes, certainly. If you are good at trading and investing. If you have clear money management rules backed by math. If not, you can only lose. And robots have one more limitation — they cannot bring you the profit all the time. Such robots offer a huge number of strategies, half of which is profitable, and the other half is not. Because a person is ultimately responsible for choosing strategies. That is, it is not the robot that makes the decisions, but the user who sets the trading rules. In some cases, it helps to earn quickly, and in others — to lose quickly. Such robots do not guarantee earnings, they only ensure fast trading. We have a radically different approach. Bruce Lee said: “I fear not the man who has practiced 10,000 kicks once, but I fear the man who had practiced one kick 10,000 times”. Therefore, instead of ten thousand strategies, we have been developing only one strategy for several years. The robots you are talking about are the first level. There are many of them and to me they are useless. Among our competitors, there are funds that trade in traditional markets using second-level robots. There are not many of them, but they all deliver consistently good results. One of the leaders in our industry is the Medallion Foundation, created by Renaissance Technologies. For several decades, their mathematical model has been continuously multiplying their capital. We consistently implement the same model of asset management, completely removing a person from decision-making process. Development will take a few more years, but even now, our robot is already trading at the professional level. The robot needs a person only for controlling and learning new functions. Some believe that technical analysis does not apply to cryptocurrency, what do you think about this statement? I actually do not care; it is rather a question of how competent is the person who said this. If it works for you, you can use it. I think you will agree that a professional can play even on one string, and the amateur can find a thousand reasons to give up. The only thing I can do is ask in return — what can the market offer instead of technical analysis? Intuitive news trading? Fundamental analysis? Neural network? Technical analysis is a complex discipline and it takes a lot of time and mental strength to fully master it. It could take a trader 10 years to learn it. Not everyone succeeds, so technical analysis does not work for everyone. I favor a more specific approach: if it doesn’t work for someone, they should figure out why, because it is working for us quite well. Where does your Foundation operate? We advertise ourselves as a global foundation. In today’s world, good business has to be global. Among our clients are representatives of the Russian Federation, the European Union, Great Britain and China. We continue to expand our reach. As for trade, over the next 6 months we will be able to manage capital on all largest exchanges of the world. Why is there a minimum deposit amount of $ 10,000? There are several reasons. First, we need funds to maintain client accounts. We do not charge a monthly fee, only a percentage of the profits. Therefore, the size of the deposit has a lower limit. Second, $10k is not much for our target audience. It also acts as a filter that shows the solvency and how serious the intentions of a potential client are. We do not target the mass market and do not deal with dumping. On the contrary, we provide long-term, high-quality services for those who can afford it. Third, the robot independently manages risks and simultaneously controls all portfolios. We don’t like it if someone can’t enter the position because the share calculated for him by the robot is not allowed on the exchange due to restrictions. Are there any differences in the management of different amounts of investment? If yes, what are they and are there any similarities in the management of investments of one quantitative segment? Our job is to describe all the differences with strict mathematical formulas and test them thousands of times under all possible conditions. Therefore, there is no big difference for us between a 5 mln purchase or 5k purchase. Everything is described, tested, calculated, everything works. Differences in the management of large capital are even more drastic. The psychological factor in this case becomes critical. The same trader managing a demo account or a million dollar account will behave like two completely different people and make fundamentally different decisions. Our task is to completely eliminate the human factor from the money management process. What are the chances for new instruments to get into the Foundation’s portfolio? What is the basis of the selection of certain tools? Are there any common priority tools for different segments of investors? Any promising liquid instrument can be included in the portfolio of the Foundation, and the choice depends on many factors. The robot evaluates and filters the instrument on the basis of special algorithms and determines the share of an asset in the portfolio based on the results of the evaluation. All decisions must be mathematically justified, taking into account the analysis of the maximum possible amount of data. The more data on the instrument we have, the higher the quality of the decisions made and the share of the instrument in the portfolio. The choice does not depend on the category of investor. If the instrument is promising and liquid, all our clients will get profit. Can you tell more about the terms of settlements between the Foundations and investors? If someone in our market guarantees you a good profit and even specifies when you could get it, then I in turn guarantee that this is a fraud. We are most interested in customer profits, as this is the only way to offset the costs of managing his account. Imagine the following situation: The new client opened a 10k deposit and a month later, he had a total of 12k in his account. At the beginning of next month, we will ask you to transfer us 1k as a fee. 11k remains on his account, but a month later, suppose, unsuccessful deals were made and there is 10k on his account again. In this case, we do not require any payments until the deposit exceeds 11k. Suppose a month later he has 12k again. Then we will charge 50% of the difference between 11k and 12k, i.e. $500. The fact that the entire team of our foundation has long transferred the management of all its assets to our robot could also count as a guarantee. We have a direct motivation to make trading as successful as possible. We do not use the services of other funds or managers. And the second fact is that the portfolios of all clients, including our personal ones, are managed simultaneously. Can you share the success stories of the Foundation? We want to implement a demo account for this purpose. We plan to fill it with transactions and statistics from 2017, copied from real accounts, but without disclosing personal data. The demo-account will include a history of the average client from the beginning of 2017. It will explain how the robot trades and what profit you can expect from it. Do you believe that private investors, to some extent, are competitors to investment funds? What, in your opinion, is it more efficient and profitable: being a private investor or investing with funds? No, we consider them not competitors, but clients. The vast majority of our clients already have experience in investing. Beginners often think they are the smartest, that they don’t need to pay someone 50% of the income when they can easily buy and sell themselves. I admit that in the short run a private investor can earn more than a robot — but definitely not over a long period. The robot ensures a stable result day after day, year after year, while people are prone to stress, illness and psychological weakness. Also, funds, compared with private investors, have more compelling ratio of risk and return. At some time, a private investor may gain the same profit as a fund. However, the fund will achieve the same profit with much less risk. My money is controlled by a robot, although I believe in my capabilities as a trader. Does the Foundation have an affiliate program? Yes, we have an affiliate program, and at the same time, we are interested in collaborating with specialists for mutually beneficial cooperation. For example, we could consider providing service for the service for really good experts in design, advertising and marketing. If you have such specialists, let them send me their proposals and CVs. See contact details on our website. What kind of future do you see for ordinary investment funds and funds like the Mercury Foundation? It is clear to me that the share of funds managed by robots will grow steadily. Most likely, in a couple of decades only old-timers will manage money manually. Robotization applies to all spheres of life and investment has already come into play. For example, the head of Japan’s Government Pension Investment Fund — the world’s largest pension fund — believes that artificial intelligence will soon completely replace asset managers. And I fully agree with him. And the largest hedge fund Bridgewater Associates is developing a decision-making algorithm that can replace all management personnel over time. How do you look at the cryptocurrency market from a global perspective? Will the Bitcoin climb to 20,000$ again? And what will happen to the altcoins? If we talk about the long term prospect, like 3–5–7–10 years, then I’ll say that today we see the early stage of the cryptocurrency market. Over time, its capitalization will be measured in trillions of dollars. The best projects of this field will become an integral part of our lives. Many of them will become new Google, Facebook, Apple and Amazon. However, this will happen gradually. In order to become a mature sector of the economy, this market will have to go through many challenges. It will face issues of legislative regulation and technical problems. The scaling and bandwidth issues of most networks are still relevant, as well as legal issues. Most states are just beginning to explore the risks and opportunities associated with these technologies. And the promotion of such technologies is still very dependent on states and supranational bodies. If we talk about the short and medium terms, the prospects are not very bright. I think that in the near future the bitcoin will certainly not reach the 20,000$ mark. We are witnessing the strongest bear market and must act accordingly. The time for positive medium-term forecasts has not yet come. The industry was severely overcrowded in 2017. There was too much hot money, many economically unfeasible projects and excessively high expectations. The market will need time to stabilize and consolidate. Most likely, we are in for a rather complicated and dangerous period of instability in the market. Obviously, this will be accompanied by some cleansing of the market from weak, incompetent and unclaimed participants. This is a necessary stage on the path towards development. I think that 80% of altcoins known to us will depreciate and disappear in the next year or two for objective reasons. It will be a time of natural selection. However, strong players will only strengthen their positions in the market. Unfortunately, there will not be many of them. Therefore, in the near future, all investors will need to take a good care of the management of their portfolios. Despite the rather grim short-term and medium-term expectations, there will be some positive developments on the market. Some cryptocurrencies are likely to exceed their all-time peaks next year. And some will just look stronger than the market. This will be enough to generate profitability even under such difficult conditions. Therefore, the main task for the near future is to manage risks in a competent and very conservative manner and select the best ones on the market for investments. From a professional point of view, what would you wish to partners of our club? Depends on their goals. If they invest for the sake of emotions, then I wish them good luck and health. If they do it to earn money, I advise you to consult with professionals. This applies not only to investments, but also to any area of life. If you want the task to be solved as accurately as possible — always contact the best professionals available. And always keep learning. Your knowledge is your most reliable asset. What books would you recommend for beginner traders? If you decide that you are ready to turn trading into your profession, then start eagerly exploring everything available to you. Everything about financial markets, about macroeconomics, about psychology, about analysis and forecasting. Do not forget that money management skills play a huge role here. Ralph Vince will help you figure it out. Even if your analysis of the markets is very good, you will lose everything eventually if your money management skills are subpar. Now is a great time to learn, you have hundreds and thousands of books available on all aspects of this profession. Someone will enjoy the works of John J. Murphy or Jack Schwager, someone will learn from William D. Gann or Robert Prechter. And remember: knowledge is more important than capital! We thank Alexander for such a detailed story about the Foundation, as well as for his sincere desire to share his opinions and forecasts. If you want to entrust the management of your funds to the Mercury Foundation, type “I want to invest in the Mercury Foundation” in the personal messages of the group.
Forex is generally traded in particular amounts such as lots, or the sum of currency units you would buy or sell.The regular size for a lot is 100K units of exchange. And now, there are also micro, mini, and nano lot sizes that are 10K, 1K, and 100 units. Lot in forex is the name of the position size of each trade. How to determine a lot size in forex? Position size is determined by the number of lots and the size and type of lot that traders buy or sell in a trade. A micro-lot consists of 1000 units of currency, a mini-lot 10.000 units and a standard lot has 100,000 units. The risk of the forex trader can be divided into account risk and trade ... Forex Lot Size Calculator. You may also be the type of trader that, sometimes, trades one currency pair at a time, using the margin to cover that particular trade. You can use a lot size calculator to maximize the lot size you can trade for a particular currency pair with the given margin size. The picture below shows how you can utilize a lot size calculator. Let’s say for this trade you ... Lot size directly impacts how much a market move affects your accounts so that 100 pip move on a small trade will not be felt nearly as much as the same hundred pip move on a very large trade size. Here is a definition of different lot sizes you will come across in your trading career as well as a helpful analogy borrowed from one of the most respected books in the trading business. Standard lot is perhaps the most common type of contract on the Forex market and among brokers.. Mini lot is called fractional, it is equal to 1/10 of the standard lot size.It’s much less used than the standard lot. This type of contract is mostly used when trading contracts for cryptocurrency. The value of one pip changes depending on the exchange rate between of the given currency pair. What is a “lot”? On Forex, the values of positions are expressed in lots. It is the unit of investment on the market. The value of a lot, its standard size, is 100 000, though certain brokers, such as Instaforex, deal with lots of 10.000. However, past that there is a lot simpler approach to do the RVR computation on the off chance that you are using charting programming like forex lot size calculator mt4. On the off chance that you can for "mt4 risk-reward indicator" on Google, you will find some custom-made indicators coded by individual traders who are sufficiently liberal to offer these as a free download.
How to Calculate Position Size When Forex Trading 👍 - YouTube
In this video, I show how to calculate the correct lot size for forex traders. I demonstrated a spreadsheet that does the calculations for you and can be dow... In this short video I will explain how to calculate your lot size as a beginner Forex trader! For more great content like this, be sure to enrol in our free ... How to Calculate Your Position Size in Different Forex Pairs and Account Currencies http://www.financial-spread-betting.com/Trade-risk-size.html PLEASE LIKE ... Earn Passive Income in Copy Trading: https://www.copypassiveincome.com/ Open Etoro Account and Get $100K virtual Money: https://bit.ly/2EtflqL Open XM Accoun... CONTACT: EMAIL 👉[email protected] MENTORSHIP 👉 www.trendtrading.academy INSTAGRAM: JayTakeProfits 👉 https://www.instagram.com/jaytakeprofits/ (... #forex #forexlifestyle #forextrader Want to join the A1 Trading Team? See trades taken by our top trading analysts, join our live trading chatroom, and acces... #forex #forexlifestyle #forextrader Want to join the A1 Trading Team? See trades taken by our top trading analysts, join our live trading chatroom, and acces...